The American Bankers Association this week recommended targeted reforms to the TILA-RESPA Integrated Disclosure (TRID) framework to reduce unnecessary compliance burdens, improve disclosure accuracy, streamline mortgage closings, and preserve strong consumer protections.
The Consumer Financial Protection Bureau recently issued a request for information seeking input on potential changes to regulations governing TRID requirements, consumers’ rescission rights under the Truth in Lending Act (TILA), and reverse mortgage disclosures and requirements.
In a letter, ABA applauded the CFPB for launching “this important review and for recognizing that regulations should be evaluated periodically to determine whether they continue to serve consumers effectively while avoiding unnecessary costs and operational burdens.”
The letter calls for modernization of disclosure timing requirements, tolerance standards, liability rules and other operational provisions that ABA believes increase costs and complexity without corresponding consumer benefits.
“Regulatory requirements should be clear, practical and focused on delivering information that consumers can readily understand and use,” ABA said.
ABA also joined with several associations in a separate letter to make several of the same recommendations. “These targeted reforms would reduce unnecessary compliance friction and improve the usefulness of mortgage disclosures for consumers,” the associations said.
