In response to a written request from the Mortgage Bankers Association (MBA), Richard Cordray, Director of the Consumer Financial Protection Bureau (CFPB), penned a response dated December 29, 2015, addressing implementation of the Truth-in-Lending Act (TILA)- Real Estate Settlement Procedures Act (RESPA) Integrated Disclosure Rule (known as TRID) (the “Rule”). The Director responded to MBA’s concerns that the "Know Before You Owe" (KBYO) implementation is causing disruption in the origination and subsequent sale to investors of residential mortgage loans. Indeed, the initial impact on the mortgage market of the Rule becoming effective in early October 2015 has been noted in the press.

As a practical matter, the Director’s letter covered three topics...