CFPB Backs Delay for New Closing Rules
June 18, 2015
The Consumer Financial Protection Bureau seeks to delay until Oct. 1, implementing the new Truth in Lending Act and Real Estate Settlement Procedures Act Integrated Disclosure regulation. The new rules were originally set to take effect Aug. 1. The proposal must still undergo a public comment period before it becomes official.
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The new "Know Before You Owe" mortgage disclosure rules aim to streamline the disclosure process for home buyers during closing by merging the Truth in Lending Act and the Real Estate Settlement Procedures Act into one form.
"The action announced Wednesday by the CFPB is a welcome step," said Chris Polychron, president of the National Association of REALTORS®. "NAR has long advocated the need to avoid implementing the new regulation during the peak summer selling season. NAR welcomes the CFPB's proposed extension to Oct, 1, as well as the earlier 'sensitivity' they offered to companies making a good-faith effort to comply with the new TRID regulation."
Nearly 300 U.S. Senators and Representatives urged the CFPB late last month expressed concern about the planned Aug. 1 start date for the new process during the summer's peak home buying season.
"We will continue to work with CFPB to minimize any possible market disruptions or uncertainty that could develop following the implementation," Polychron said.
CFPB Director Richard Cordray released the following statement Wednesday in response to the agency's proposed delay: "We made this decision to correct an administrative error that we just discovered in meeting the requirements under federal law, which would have delayed the effective date of the rule by two weeks. We further believe that the additional time included in the proposed effective date would better accommodate the interests of the many consumers and providers whose families will be busy with the transition to the new school year at that time."
Source: The Consumer Financial Protection Bureau, NAR
Updated: July 18, 2018