SACRAMENTO, Calif., May 2, 2016 /PRNewswire-USNewswire/ -- Escrow Institute of California (EIC) has announced its support of efforts by the Consumer Financial Protection Bureau (CFPB) to clarify and provide guidance on the TILA-RESPA Integrated Disclosure (TRID) that went into effect on October 3, 2015.
"The Settlement Profession is encouraged by the recent comments of Director Richard Cordray," says Escrow Institute President Nancy Silberberg. "Since October 3, 2015, and the implementation of TRID, also referred to as the 'Know Before You Owe' rule, we have been burdened with many unknowns. Guidance and clarity from the Bureau will most certainly help going forward."
The EIC has been particularly concerned by some of the trends that it feels stemmed from a lack of clear guidance by the Bureau to lenders.
"Lender instructions can vary drastically from lender to lender, but a common theme among many is the attempt to become a 'de facto regulator' of the settlement industry," said Silberberg. "This has occurred because of broad language within the rule and lack of guidance to the mortgage originators. If the CFPB would give clear, concise and thoughtful consideration to the concerns of the settlement industry across the nation, it would help the lending industry, settlement professionals and most importantly the consumer. Buyers and sellers have the right to expect that the settlement agent is a neutral third party in their real estate transaction. Having lenders become 'de facto regulators' is not their responsibility or function. We believe every player in the settlement transaction should have input in the upcoming talks.
"We are hopeful that the Bureau, in opening up this regulatory initiative, will be willing to listen to all of the affected industry groups and make necessary changes to the 'Know Before You Owe' rule. We are encouraged that further discussion with the Bureau throughout this rule making process will occur and we look forward to be active participants in the months ahead."
President Silberberg and members of EIC will be traveling to Washington, D.C. the week of May 9th to meet and discuss their concerns with representatives of the CFPB.
"We further support the American Land Title Association and their ongoing efforts to discuss the effects of the current disclosure rules regarding the title insurance costs on the closing disclosure," said Silberberg. "Consumers, lenders and settlement agents alike are perplexed by the 'magical math' (Simultaneous Title Insurance Premium Adjustment) required by the rule. We also hope that some of the challenges we currently face, such as exact recording costs that plague lenders and settlement agents nationally, will be given further consideration."
About the Escrow Institute of California
The Escrow Institute of California (EIC) is the professional trade association that represents California Department of Business Oversight licensed escrow/settlement agents. The California Department of Business Oversight currently licenses 949 locations throughout the state where more than 6,100 people, mostly women, are employed. For more information, please visit www.escrowinstitute.org.
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SOURCE Escrow Institute of California