Written by: Eliott C. Ponte, Regulatory Compliance Counsel
TRID Technical Corrections
Twas the night before Christmas, when all through the regs, only one thing was changing, and that was TRID!
The CFPB issued a final rule containing technical corrections to the final TILA-RESPA Integrated Disclosure Rule (TRID). The technical corrections became effective on December 24, 2015, which was the date of its publication in the Federal Register.
According to the final rule, the “publication of the TILA–RESPA Final Rule in the Federal Register resulted in several unintended deletions of existing regulatory text from Regulation Z and the Official Interpretations (commentary) in the Code of Federal Regulations (CFR) and, in one case, the omission of regulatory language in the TILA–RESPA Final Rule from the CFR.” The CFPB maintains that the technical corrections are non-substantive changes to TRID, and these changes merely correct accidently deleted or omitted text. Specifically, the final rule makes the following technical corrections to Regulation Z:
- Amends section 1026.22(a)(5) to restore subparagraphs (i) and (ii).
- Amends the commentary to § 1026.17 at paragraph 17(c)(1)-2 to restore subparagraphs i, ii, and iii.
- Amends commentary paragraph 17(c)(1)-4 to restore subparagraphs i.A, and i.B.
- Amends commentary paragraph 17(c)(1)-10 to restore introductory text and subparagraphs iii, iv, and vi.
- Amends commentary paragraph 17(c)(1)-11 to restore subparagraphs i, ii, iii, and iv.
- Amends commentary paragraph 17(c)(1)-12 to restore subparagraphs i, ii, and iii.
- Amends commentary paragraph 17(c)(4)-1 to restore subparagraphs i and ii.
- Amends commentary paragraph 17(g)-1 to restore subparagraphs i and ii.
- Amends the commentary to § 1026.18 at paragraph 18(g)-4 to restore text to subparagraph i.
- Adds commentary paragraph 7 to Appendix D of Regulation Z, as this was included in the TRID Final Rule but was accidently omitted when codified in the CFR.
Extension of the SCRA’s Post-Service Mortgage Protections Likely
The Servicemembers Civil Relief Act’s (SCRA’s) post-service mortgage protection ensures servicemembers who are serving in the armed forces are protected against losing their home for one year upon his or her return from active duty, if the mortgage was obtained before the servicemember was an active member of the military. Originally, the extension was for 90-days; however, in 2008 Congress voted to extend this protection to nine months. In 2012, the protection was extended to one year. As of December 31, 2015, the one-year extension protection expired, and the period of mortgage protection has now reverted to the original 90-days.
Currently, the Senate introduced and passed bill S. 2393, which would restore the one-year protection through December 31, 2017. The House is similar bill (H.R. 189) that would restore the one-year protection through December 31, 2016. While it is not clear which or when any bill will pass, it is likely that some version of the bill will eventually pass.
How to Develop an Enterprise-Wide Risk Management Function
Live Webcast: Wednesday, January 13 | 2:00 p.m. – 3:30 p.m. EST
Learn step-by-step guidelines for creating and executing a best-practice, enterprise-wide risk assessment. This informative webcast will cover essential topics such as: how to develop a risk model, key factors to include in your risk assessment, identifying the potential risks of financial, operational, and IT processes and more. Help ensure you are performing a proper risk assessment for your credit union so you can adequately contain the highest potential risks.