CFPB Requests Input on Reducing Mortgage-Credit Regulatory Burdens: Potential Changes to TRID, ATR/QM, and Closing Processes
CFPB issued a request for information on possible regulatory changes to promote access to mortgage credit. The request covers changes to TRID/TILA-RESPA integrated disclosures, right-of-rescission rules, reverse-mortgage disclosures, ATR/QM standards, portfolio-loan treatment, and closing-disclosure timing. Comments are due 30 days after Federal Register publication.
Development Summary
Agency: Consumer Financial Protection Bureau (CFPB)
Subject: Request for information (RFI) on possible regulatory changes to promote access to mortgage credit
Comment deadline: 30 days after Federal Register publication
Status: Request for information — comment period open
Scope of the Request for Information
The CFPB's request for information covers possible changes aimed at reducing regulatory burden in the mortgage lending process and improving credit access. Key areas include:
TRID / TILA-RESPA Integrated Disclosures
TRID is the comprehensive rule set governing disclosure requirements in the mortgage application and closing process. CFPB is seeking input on simplifying TRID requirements, modifying disclosure timelines, or eliminating certain disclosure obligations.
Right-of-Rescission Rules
Consumers' right to rescind certain mortgage transactions extends closing processes. CFPB is evaluating the impact of changes to right-of-rescission rules on credit access.
Reverse Mortgage Disclosures
Review of disclosure requirements for reverse mortgage products.
ATR/QM Standards
Ability-to-Repay/Qualified Mortgage (ATR/QM) standards govern the lender's obligation to assess the borrower's repayment capacity and the qualified mortgage safe harbor. CFPB is evaluating the impact of changes to these standards on credit access.
Portfolio Loan Treatment
The possibility of different regulatory treatment for loans held in portfolio (not securitized).
Closing Disclosure Timing
Changes to rules governing the timing of closing disclosure delivery.
Legal and Practical Analysis
What does this request for information mean?
The CFPB's request for information is not a direct rule change — but it is a harbinger of future regulatory changes. CFPB may use the input gathered in this process as the basis for future proposed rule changes.
Direction of possible changes
The framing of the request focuses on reducing regulatory burden and improving credit access. This could mean simplification of TRID requirements, expansion of the ATR/QM safe harbor, or shortening of closing timelines.
Compliance risk
Possible changes affect existing compliance systems, disclosure templates, and business processes. Early identification of the direction of changes is critical to minimizing compliance costs.
Practical Implications: What Parties Should Do
Residential lenders and mortgage banks
- Submit comments to the request for information to convey industry views
- Assess the impact of possible TRID and ATR/QM changes on compliance systems and business processes
- Analyze the operational impact of closing timeline changes
Mortgage brokers
- Assess the impact of possible changes to disclosure requirements on client communications
- Monitor the comment process and submit views through industry associations
Real estate attorneys and closing agents
- Assess the impact of possible changes to closing disclosure timing and right-of-rescission rules on closing processes
- Inform clients about possible changes
Title companies and settlement agents
- Assess the impact of TRID changes on title insurance and settlement services processes
Real estate developers and investors
- Assess the impact of closing timeline changes on project financing and sales processes
- Analyze the impact of ATR/QM changes on buyer financing access and therefore sales volume
Significance for Turkish-American Cross-Border Practice
- Turkish-Americans' U.S. housing finance — Turkish-Americans purchasing homes or refinancing in the U.S. should monitor the impact of TRID and ATR/QM changes on closing processes and documentation requirements
- Turkish real estate investors — Turkish investors making U.S. residential or commercial real estate investments should assess the impact of mortgage regulation changes on financing access and closing processes
- Turkish-American real estate development projects — Turkish-American partnerships developing residential projects in the U.S. should analyze the impact of changes in buyer financing access on sales projections
This post is part of ULF New York’s monitoring series tracking U.S. regulatory developments and Turkish-American cross-border practice areas. It does not constitute legal advice.