CFPB interpretive ruling provides TRID, Reg. Z flexibility


The CFPB has issued an interpretive ruling intended “to make it easier for consumers with urgent financial needs to obtain access to mortgage credit more quickly in the middle of the COVID-19 pandemic.”

The move is intended to allow financial institutions to “better serve consumers to obtain access to mortgage credit quickly, despite operational disruptions. These steps also will reduce regulatory uncertainty and allow creditors to focus their resources on meeting consumers’ needs,” according to the CFPB statement released Wednesday.

The interpretive ruling clarifies that the COVID-19 pandemic should be considered a “changed circumstance” for purposes of provisions under the Truth in Lending Act-Real Estate Settlement Procedures Act Integrated Disclosure rule, allowing creditors to use revised estimates reflecting changes in settlement charges for purposes of determining good faith.

The full interpretive rule geared toward addressing issues with the TRID rule and Regulation Z rescission rules can be accessed by clicking here.

The CFPB also issued a FAQ Sheet for creditors to clarify “when creditors must provide appraisals or other written valuations to mortgage applicants in order to expedite access to credit for consumers affected by the COVID-19 pandemic.”

The FAQ sheet can be accessed by clicking here.

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