While the broader mortgage industry has grappled with adjusting to the Consumer Financial Protection Bureau’s (CFPB) infamous TRID regulations for the past four months, it turns out the new rules had a typo all along regarding property-related costs.
In a notice published in the Federal Register this month, the CFPB addressed a “typographical error” within its Integrated Mortgage Disclosures Under the Real Estate Settlement Procedures Act and the Truth in Lending Act—a final rule abbreviated by many in the mortgage industry simply as “TRID” (TILA-RESPA Integrated Disclosures).
Specifically, the Supplementary Information to the TILA-RESPA final rule, issued last October, contained a typo in the sentence stating “property insurance premiums, property taxes, homeowner’s association dues, condominium fees, and cooperative fees” as being “subject to tolerances,” when in fact, the CFPB clarified these costs “are not subject to tolerances.”
Additionally, CFPB notes the Supplementary Information sentence being corrected is inconsistent with the sentence that precedes it—which lists fees as subject to tolerance—because the preceding sentence states that “property insurance premiums are included in the category of settlement charges not subject to a tolerance, whether or not the insurance provider is a lender affiliate.”
Consequently, page 79829 of the Supplementary Information, regarding “property insurance premiums, property taxes, homeowner’s association dues, condominium fees, and cooperative fees,” the phrase “are subject to tolerances,” should read “are not subject to tolerances.”
The correction is effective February 10, 2016.
View the Federal Register notice.
Written by Jason Oliva