ICBA urged the Consumer Financial Protection Bureau to move its TRID Sandbox Project forward with a modified TILA-RESPA Integrated Disclosure (TRID) form developed by ICBA.
Background: Under ICBA’s proposal, the CFPB would permit community banks to test modified TRID forms for consumer construction and construction-to-permanent loans. Using existing TRID disclosures for construction loans can be confusing, leading some creditors to avoid making these loans due to compliance concerns.
What It Means for Community Banks: In a letter to the CFPB, ICBA said the modified forms have the potential to address housing affordability, support consumers through greater clarity about the loan process, and streamline the loan process for community lenders.
Prior Promotion: The CFPB in 2023 promoted its approval of ICBA’s proposed template to improve mortgage disclosures in testimony before Congress. The ICBA proposal was the first application approved under the CFPB’s trial disclosure policy and illustrates how the bureau can collaborate with private industry to address market needs.
