CFPB to Reopen “Know Before You Owe” Rulemaking
The Consumer Financial Protection Bureau (CFPB) recently announced it will reopen the unpopular “Know Before You Owe” rule to potential modifications this summer. The rule, which includes the Truth-in-Lending Disclosure (TRID), went into effect last October and replaced the Good Faith Estimate and the HUD-1 with a Loan Estimate (LE) and a Closing Disclosure (CD).
National Association of Realtors (NAR) President Salomone offered a mixed response to the CFPB’s decisions stating, “The real estate industry has responded well to the implementation of “Know Before You Owe,” but there’s still work ahead.” In reality, the real estate community has not responded well to the CFPB’s misguided rulemaking at all.
In fact, the rule has imposed burdensome and unnecessary regulations on real estate agents and homebuyers resulting in an increase in the cost and length of time it takes to close on a loan. Significant changes are needed to address the problems caused by CFPB intervention in the real estate market. While reopening the “Know Before You Owe” rule is a step in the right direction, the CFPB has done more harm to consumers and real estate professionals than nearly any other federal agency.