DSNews The homepage of the servicing industry
In November, the Independent Community Bankers of America (ICBA) expressed their support for the Consumer Financial Protection Bureau’s approval of ICBA’s proposed template to improve mortgage disclosures required under TILA-RESPA Integrated Disclosure (TRID) rules.
According to the release, under ICBA’s Trial Mortgage Disclosure Sandbox Template proposal, the bureau would permit community banks to test modified disclosures for consumer construction and construction-to-permanent loans—a core offering of community banks in many local communities.
The ICBA and some 42 affiliated state banking associations earlier this year urged the bureau to test and ultimately adopt the proposal given the potential benefits to consumers and lenders.
“ICBA and our affiliated state community banking associations support today’s CFPB announcement that it will allow community banks to test updated mortgage disclosures to improve the process for lenders and borrowers alike,” said Rebeca Romero Rainey, President and CEO at ICBA.
The current TRID disclosure regime focuses on transactions for purchasing a home or refinancing a mortgage loan, so it does not adequately disclose the components of construction loans. While construction loans are often needed in small towns and rural communities, using existing TRID disclosures is confusing, leading some creditors to avoid making these loans due to compliance concerns.
“The proposed template will provide consumers greater clarity, streamline the process through improved disclosure requirements, and expand access to more affordable homes in rural areas with limited housing supply," said Rainey.
To read the full release, including more information, click here.
