It’s official: CFPB sets TRID date for Oct. 3

Industry given the weekend to launch new systems

Clock and calendar

The Consumer Financial Protection Bureau officially finalized the rule to change the effective date of the Know Before You Owe mortgage disclosure rule, also called the TILA-RESPA Integrated Disclosures rule, to Oct. 3, 2015.

“The bureau believes that moving the effective date may benefit both industry and consumers with a smoother transition to the new rule,” the CFPB said in a statement.

“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. A Saturday launch is also consistent with industry plans tied to the original effective date of Saturday, Aug. 1,” the statement continued.

The industry welcomed the news after pushing for a delay for some time. 

“Having witnessed firsthand the significant challenges the industry is facing in preparing for change of this magnitude, we understand the CFPB’s decision to push back the TRID effective date,” said Art Tyszka, senior director and general manager of residential lending with Wolters Kluwer Financial Services. “The two-month extension provides needed breathing room for many lenders to help ensure they are compliant when the deadline arrives."

The required loan documentation consists of two new forms: the Loan Estimate and the Closing Disclosure to ensure compliance.

These new forms consolidate the TILA-RESPA forms and are meant to give consumers more time to review the total costs of their mortgage. The Loan Estimate is due to consumers three days after they apply for a loan, and the Closing Disclosure is due to them three days before closing. 

The bureau first announced a proposal to delay the effective date of TRID until Oct. 1 in order to correct an administrative error that it 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,” CFPB Director Cordray said at the time.

On June 24, the TRID effective date was changed again, moving from Oct. 1 to Oct 3. 

The final rule issued Tuesday also includes technical corrections to two provisions of the Know Before You Owe mortgage disclosure rule.


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