CFPB blinks on TRID rule effective date
CFPB Director Cordray issued a statement yesterday afternoon indicating that the CFPB will propose to delay the effective date of the TILA/RESPA Integrated Disclosure (TRID) rule until October 1, 2015. The CFPB has previously resisted calls from industry and lawmakers for a delay in the TRID rule’s scheduled August 1 effective date. Earlier this month, it conceded only that that it would take a “sensitive” approach to compliance for entities who had made good faith efforts to comply with the rule by August 1.
In his statement, Director Cordray indicated that the CFPB decided to propose the delayed effective date “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.” According to Director Cordray, the CFPB believes “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.” Initial reactions from mortgage industry members are positive, as the industry has been advocating for a delay, both before the CFPB and Congress. Some members believe that concerns with the finalization of the necessary software to comply with the TRID rule may have been a factor in the CFPB’s decision.