TILA-RESPA Integrated Disclosures (TRID) Rule

The TILA-RESPA Integrated Disclosure (TRID) rule became effective October 3, 2015, and non-compliance poses a significant threat to your real estate transactions, your reputation, your firm, and your bottom line due to the risk of heavy penalties.

For title agencies, mortgage lenders, and other professionals who handle housing transactions, maintaining compliance with regulations, such as TRID, that are enforced by the Consumer Financial Protection Bureau (CFPB), is a must. Otherwise, heavy financial penalties are inevitable. For example, violations of CFPB-enforced regulations resulted in over $19 million in remediation paid to over 92,000 customers between July and December 2014.

Maintaining CFPB compliance requires safeguarding the privacy and security of non-public information (NPI) and adhering to TILA-RESPA guidelines. This set of laws works to guarantee that users have transparent, helpful access to records and information regarding their home settlements. This includes any costs and fees associated with final transactions.

Sending and receiving Disclosure and Estimate documents with email offers a much more expedient and convenient alternative to traditional postal mail, but ensuring NPI compliance in accordance with the CFPB is imperative.

Social security numbers, bank information, and other NPI must be protected in order to maintain CFPB compliance. To help agencies better equip themselves to protect such sensitive consumer data, Protected Trust offers compliant and secure email.

Penalties for Non-Compliance

Closing even a single loan in violation of the TRID poses penalties than can far outweigh any costs incurred in ensuring compliance with its requirements. By delaying or skimping on effective implementation of policies, procedures, secure technology, and personnel training, you may be facing a serious financial disaster. Penalties for non-compliance include:

  • Statutory damages in certain cases
  • Court Costs and attorney’s fees
  • Penalties of up to $4,000 for failure to properly provide certain disclosures (Including borrower’s interest rate and APR)
  • Civil money penalties of $5,000 per day per violation – (CFPB)
  • $25,000 per day for reckless violations – (CFPB)
  • $1,000,000 per day for knowing violations – (CFPB)

Affected Industries

  • Title Companies
  • Creditors/Mortgage Companies
  • Law Firms that handle Real Estate Transactions
  • Real Estate Agents

Enforcement

  • Consumer Financial protected Bureau (CFPB)

Penalties

  • Fine up to $250,000 per violation
  • Fines up to $1.5 million annually
  • Imprisonment up to five years
  • Individual and class-action lawsuits
  • State attorneys general