CFPB Publishes Clarification to TRID Preamble

The CFPB issued a notice in the Federal Register on February 10, 2016, to insert a previously omitted “not” from a sentence in the preamble to the TILA RESPA Integrated Disclosure (or “Know Before You Owe”) Rule. The corrected sentence, which has been the subject of numerous industry debates, discusses the tolerance standard that applies to property insurance premiums, property taxes, homeowner’s association dues, condominium fees, and cooperative fees.

Specifically, on page 79829 of Volume 78 of the Federal Register (i.e., the TRID Rule), in the first column, in the sentence containing “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 corrected sentence now reads “The final rule also mirrors current Regulation X in that property insurance premiums, property taxes, homeowner’s association dues, condominium fees, and cooperative fees are not subject to tolerances whether or not they are placed into an escrow, impound, reserve, or similar account.”

A copy of the correction document may be found here: https://www.federalregister.gov/articles/2016/02/10/2016-02630/2013-integrated-mortgage-disclosures-rule-under-the-real-estate-settlement-procedures-act-regulation.