On Wednesday, the Consumer Financial Protection Bureau (CFPB) announced that it would be “sensitive” to companies that make a good-faith effort to comply with the new Truth in Lending Act and Real Estate Settlement Procedures Act Integrated Disclosure (TILA/RESPA, or TRID) regulation that goes into effect on August 1, 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.
In an e-mail to local associations, the National Association of REALTORS® (NAR) called this week’s CFPB announcement a “welcome development” that was comparable to the agency’s effective implementation of the Qualified Mortgage (QM) regulation in 2014. But while characterizing the development as a “net win”, NAR said it was less than what more than 275 members of Congress (including the entire North Carolina delegation) requested in a recent letter to the agency, which was a hard deadline five-month testing or “grace” period.
NAR will continue to work with CFPB and Congress to ensure an effective implementation of the TRID regulation as August 1st approaches. Realtors® can learn more about the new rules at NAR’s website, and at a June 24th Realtor® Hot Topics program hosted by the Charlotte Regional REALTOR® Association. Click HERE to register.