The CFPB corrected the TILA/RESPA Integrated Disclosure (TRID) Rule by inserting a missing word that impacted the question of property taxes.
As originally published in the Federal Register on December 2013, the Rule stated that “property insurance premiums, property taxes, homeowner’s association dues, condominium fees, and cooperative fees … are subject to tolerances whether or not they are placed into an escrow, impound, reserve, or similar account.”
A small but crucial word was missing — the Rule was supposed to read “are not subject to tolerances whether or not they are placed into an escrow, impound, reserve, or similar account.”
The correction was published in the 2/10/16 Federal Register and goes into effect immediately.
Source: The information contained in this post was prepared by First American Title Insurance Company for informational purposes only and does not constitute legal advice.