New lender disclosure requirements aren’t just disrupting the market for private-label mortgage bonds; they could also impact the market for bonds that transfer credit risk of mortgages insured by Fannie Mae and Freddie Mac to the private sector.

The Consumer Financial Protection Bureau’s TILA-RESPA Integrated Disclosure Rule, known as TRID, which took effect in October, was intended to help homeowners understand the total costs of a home loan. But because of the number of variable to account for on the forms, compliance has proven extremely difficult. This has caused private investors to reject loans at an unprecedented rate, out of concern that they could be held responsible for noncompliance.

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