The Consumer Financial Protection Bureau (CFPB) today issued a final rule moving the effective date of the ‘Know Before You Owe’ mortgage disclosure rule, also called the TILA-RESPA Integrated Disclosures (TRID) Rule, from August 1st to October 3, 2015.
The TRID regulations will replace the HUD-1 settlement statement, Good Faith Estimate forms, and Truth in Lending Act disclosure with a new Closing Disclosure and a new, single Loan Estimate. There will be changes to the closing process as well, including a new rule requiring everything to be in place three days prior to closing.
CFPB said it issued the change to correct an administrative error that would have delayed the effective date of the rule by at least two weeks, until August 15, at the earliest. In a release today, the Bureau said it ” believes that moving the effective date may benefit both industry and consumers with a smoother transition to the new rule. The Bureau further believes that scheduling the effective date on a Saturday may facilitate implementation by giving industry time over the weekend to launch new systems configurations and to test systems.”
The final rule issued today also includes technical corrections to two provisions of the Know Before You Owe mortgage disclosure rule.
In separate remarks last week before the Senate Banking Committee, CFPB Director Richard Cordray reiterated his commitment that the Bureau will show great “sensitivity” to good faith efforts to comply with the new TRID Rule. “For the first period, which may last many months,” Cordray said, “if we see errors, we will point out what they are and how they should be corrected. We will not be looking to be punitive to people.”
In May, Realtors® from across the nation met in Washington, D.C., and asked their members of Congress to sign a letter asking CFPB for a grace period for the rule.