Industry Wants CFPB’s ‘Clarifying Letter’ on TRID Errors Put in the Federal Register for Legal Protection
February 4, 2016
Different factions of the mortgage industry are strongly urging the Consumer Financial Protection Bureau to place its yearend “clarifying letter” on TRID errors into the Federal Register, believing that it would provide stronger legal protection. According to interviews conducted by Inside Mortgage Finance, TRID errors – even minor ones – continue to be a chief reason why certain secondary market investors are rejecting mortgages, in particular non-agency product. The fear for these investors is assignee liability, that they could be sued for TRID errors even though they had nothing to do with the loan’s origination. One paragraph in the Dec. 29 letter from the CFPB to the Mortgage Bankers Association begins...