CFPB Clarity on Investors’ TRID Liability Could Thaw Secondary Market

Fri June 10, 2016

Secondary market loan purchaser liability is probably the juiciest topic that the Consumer Financial Protection Bureau will address in its expected clarifications of TILA/RESPA integrated disclosure rules in July.

While most of the assignee liability risk is associated with the Closing Disclosure — the required form provided to consumers prior to closing to help them understand their transaction costs — the issue even affects the Loan Estimate form, which informs consumers about the key features, costs and risks of the mortgage they are applying for. Loan purchasers have discounted and even refused to buy loans that have what they perceive as problems on the LE disclosure.

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