CFPB Corrects Disruptive Typo in TRID Rule

The Consumer Financial Protection Bureau yesterday issued a correction of a typo in the TILA-RESPA integrated disclosures. One section of the official preamble to the final rules had said that certain charges — including property insurance premiums, amounts placed in escrow and charges not required by the creditor such as homeowners’ association dues and condo fees — are subject to the tolerances in the TRID rule.

However, this was inconsistent with a preceding sentence and has caused much confusion among lenders and disruptions in the secondary market. ABA has communicated this problem to the CFPB, and the bureau issued a revision noting that such charges are not subject to tolerances. For more information, contact ABA’s Rod Alba.