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Last week Thursday, the Consumer Financial Protection Bureau (CFPB) announced a delay in the implementation of the new Truth-In-Lending Act/Real Estate Settlement Procedures Act Integrated Disclosure (TILA/RESPA Integrated Disclosure).
The CFPB announced its plans to issue a proposed amendment to delay the effective date of the TILA/RESPA Disclosure rule until October 1, 2015. Specifically, the statement reads:
“The CFPB will be issuing a proposed amendment to delay the effective date of the ‘Know Before You Owe’ rule until October 1, 2015. 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.”
With this announcement being made, there have been other issues/questions raised. The following is some clarification directly from Dave Stevens, President and CEO, at The Mortgage Bankers Association.
1. The commitment period for the new rule will likely be 30 days.
2. Barring an overwhelming negative response the new date will be October 1, 2015. Dave Stevens indicates that the initial responses to MBA were very positive.
3. Requests to push the delay further than October 1 are likely a waste of time.
4. There will NOT be an option to implement the new rule prior to the new date… only one RESPA/TILA rule can be in effect at the same time. Those that are ready will have to delay until October 1.
Wisconsin Mortgage Corporation will keep you updated on TRID and implementations what it means to homebuyers.
For all your mortgage needs, visit Wisconsin Mortgage Corporation or contact a Loan Officer today.
Categories: Mortgage
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