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Advocacy groups urge CFPB to keep TRID mortgage safeguards
They warn that weakening TRID could reduce protections tied to the three-day mortgage rescission right and reverse mortgage disclosures.
Consumer and housing advocacy groups urged the Consumer Financial Protection Bureau to preserve mortgage borrower protections under the Truth in Lending Act and the Real Estate Settlement Procedures Act, warning that proposed federal lending changes could leave consumers more exposed to predatory practices and unaffordable loans.
HousingWire reports the coalition, including the National Consumer Law Center, National Housing Law Project, National Fair Housing Alliance, Americans for Financial Reform Education Fund and Consumer Federation of America, submitted comments opposing changes that would affect TILA-RESPA Integrated Disclosure rules, or TRID.
A central concern raised by the groups is the potential impact on borrowers’ right to rescind certain mortgage transactions. Under the current framework, borrowers have a three-day window to cancel without penalty, which the groups say helps families review final loan terms and reconsider if they felt pressured to close.
The organizations also said reverse mortgages need particular attention, calling for stronger reverse mortgage disclosures and pre-loan counseling requirements. HousingWire notes National Consumer Law Center attorneys argued that the pre-consummation disclosures and the rescission right work together because mortgage transactions are too complex to fully absorb at closing.