Grace period Announced for TILA-RESPA Requirements
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 (TRID) regulation that goes into effect on August 1, 2015. This is a welcome development that can be compared to the effective CFPB implementation of the Qualified Mortgage (QM) regulation in 2014.
Bottom Line: The announcement by CFPB is a net win but less than what some Members of Congress requested, which was a hard deadline five-month testing or “grace” period.
NAR has been leading the effort to ensure an effective implementation of the TRID regulation. We will continue to have a dialog with Congress and the CFPB as we move toward August 1, 2015. Colorado REALTORS® on Capitol Hill last month in Washington, D.C. asked our Congressmen to sign onto the letter asking Director Cordray for clarification and to implement a grace period on enforcement, and we are grateful to Congresswoman DeGette, Congressman Perlmutter, and Congressman Coffman, along with over 275 of their colleagues, who signed the letter.