On 10/1/2020, the CFPB issued a formal review of its TRID rule, as required by the Dodd-Frank Act.
To complete this required report, the CFPB began work on the assessment in early 2019 and solicited public comment on its research plan and other questions. The report begins with a message from Director Kathleen Kraninger, and she highlights some key findings and conclusions of the report as follows:
In laboratory testing, borrower understanding of mortgage transactions has improved due to their receipt of required disclosures.
The TRID rule created a sizeable implementation cost for lenders and closing companies, averaging 2.0 percent of the average cost of originating a mortgage and ten percent of the average cost of closing a mortgage by a closing company.
Ongoing costs of TRID are not clear.
The TRID rule, at least initially, appears to have decreased mortgage originations and increased closing times.
The CFPB TRID Assessment can be found here.