CFPB TRID Review Sparks Fight Over Refinance Rescission Rights

The TILA-RESPA Integrated Disclosure rule, known as TRID, took effect on Oct. 3, 2015, combining federal mortgage disclosures and requiring borrowers to receive a Closing Disclosure at least three business days before consummation. The Truth in Lending Act separately gives borrowers three business days after closing to cancel most refinancings secured by a principal residence. The safeguards give homeowners time to review loan terms, but lenders say the overlapping periods unnecessarily delay funding.

The Consumer Financial Protection Bureau issued a request for information on July 9, 2026, under docket CFPB-2026-0018, with comments due Aug. 10. The Mortgage Bankers Association urged the agency to eliminate the post-closing rescission right for refinancings, arguing that TRID already provides a three-business-day review period before closing. Consumer protection groups strongly opposed the proposal, saying rescission remains an essential backstop against errors, high-pressure sales tactics and predatory loans that put borrowers’ homes at risk.