California Bankers Sign Letter to CFPB Regarding TRID Disclosure
On July 3, the ABA sent a letter, co-signed by several California bankers, to Consumer Financial Protection Bureau Director Mick Mulvaney, urging the bureau for regulatory relief from rules affecting residential construction lending. Specifically, the letter requests immediate action to exempt residential construction-only loans from the TRID disclosure regulation.
The application of the TRID disclosures to single-family construction loans for owners/borrowers generates new requirements for multiple disclosures throughout the underwriting and construction process. These are often preliminary, and therefore don’t reflect the true final loan terms that apply to the finance of the residential property, resulting in confusion – not clarity – for the borrower.
As a direct result, many financial institutions across the nation have ceased this type of lending rather than face potential liability for inadvertent errors. This lender flight has resulted in a severely curtailed marketplace for borrowers seeking to build or rebuild, which has been particularly problematic in regions seeking to recover following several recent natural disasters, which include hurricanes, floods, mudslides, wildfires and volcanic eruptions.
CBA thanks our California bankers who signed on to the letter, a copy of which can be read here.
Additionally, on Wednesday, August 8, the CBA and our friends at Aldrich & Bonnefin, will host Jennifer Stockett, the deputy assistant director, office of financial institutions, external affairs for the CFPB for a roundtable discussion.
We invite you to join us for the meeting, where we expect we will discuss this issue, as well as any other issues that may be top of mind for our bankers. Attendance is limited to 25; please click here if you are interested in attending. Aldrich & Bonnefin is hosting the meeting, and light refreshments will be served. Additional details for the meeting can be found below.
Wednesday, August 8
10 a.m. – noon
Aldrich & Bonnefin, PLC
18500 Von Karman Avenue, Suite 300
Irvine, California 92612
Complimentary, onsite parking is available