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TH E M R EP O RT | 17 COVER STORY 813.387.1100 | MCS360.COM | INFO@MCS360.COM | 350 HIGHLAND DRIVE | SUITE 100 | LEWISVILLE, TX | 75067 The Industry Leader in Property Registrations. CUSTOMIZED REPORTING & TRACKING FINE RECONCILLIATION & NEGOTIATION LONG RUNNING RELATIONSHIPS WITH MUNICIPALITIES PROPERTY INTERNAL MATRIX NATIONWIDE COVERAGE PROPERTY GEO-CODING EXCELLENT CUSTOMER SERVICE MULTI-LAYER QUALITY REVIEW PROCESS ing how such frequently imposed charges should be disclosed. In addition, while the CFPB clarified certain aspects regarding the category of charges that are not subject to the tolerance requirements, the CFPB amended TRID to create a new condition that charges must be "bona fide" for them to fall in this category. The CFPB defined the new bona fide standard as "lawful and for services that are actually performed." This creates two requirements that such charges are "lawful" and for "services that are actually performed." Does this mean that creditors must analyze the legality of each charge under state law, as well as document that the service was actually performed to ensure the charge is not subject to the tolerances? This new provision creates more uncertainty. Locked and Loaned T he CFPB also added com- mentary to the rule that requires creditors to provide a re- vised Loan Estimate whenever the interest rate is first locked, regard- less of whether the interest rate or the interest rate-dependent terms have changed. This may repre- sent a change from how many in the industry were interpreting the existing rule. The provision requiring a revised disclosure in the event of a rate lock exists in the tolerance rules, which only require a revised disclosure when a creditor wants to impose in - creased charges on the borrower. It doesn't appear under the cur- rent rule that a revised disclosure is required for all rate locks. As a result, this revised provision may represent a new compliance burden for industry. As you can see, although the CFPB billed the TRID 2.0 rule as providing clarity and certainty for the industry, it actually may create more confusion and un - certainty for certain areas of the rule. Although the industry may disagree about whether the TRID rule is achieving its intended benefits of greater clarity of loan terms and costs for consumers, one thing it can agree on is that, at least in the areas described above, TRID 2.0 has not achieved greater clarity for the industry. RICHARD HORN is Founding Attorney of Richard Horn Legal, PLLC and is a former CFPB attorney who led the rule integrating the mortgage disclosures under the Truth in Lending Act and the Real Estate Settlement Procedures Act into the TILA-RESPA integrated disclosures. Horn has extensive experience and expertise as a former Senior Counsel and Special Advisor at the CFPB and Senior Attorney at the FDIC. Richard Horn Legal, PLLC specializes in consumer financial services regulation, with a focus on residential mortgage compliance.