The industry wanted a delay. And they got it.

Not only was just about every respected industry group petitioning for a delay, but even Congress added its name to the list of people pleading the Consumer Financial Protection Bureau to delay the Aug. 1 implementation date of the TILA-RESPA Integrated Disclosure requirements.

At the end of March, the CFPB went on record saying that they will not extend the TRID deadline after a speech from Steven Antonakes, deputy director of the CFPB, to the Consumer Bankers Association, suggested that the CFPB could delay the Integrated Disclosure implementation date. 

The CFPB then further extinguished any hope of a delay in May after Director Richard Cordray gave a speech at a National Association of Realtors conference reaffirming the Aug. 1 deadline.

Despite all of this, the industry was still granted a good-faith enforcement grace period that both the mortgage industry and a bipartisan coalition in Congress have asked for.

And on Wednesday, the industry received the one thing it was asking for. The CFPB proposed to delay the effective date of the TILA-RESPA Integrated Disclosure rule until Oct. 1.

“MBA welcomes the decision by the CFPB to issue a proposed amendment to delay the implementation of TRID until October 1st.  The complexity of this rule, which impacts not just mortgage disclosures but also the business processes behind the entire real estate transaction, warrants the additional time to get it right and ensure that consumers are not adversely effected by the transition,” said Mortgage Bankers Association President and CEO David Stevens.   

"MBA will be providing comments on this proposal to recommend the best way to implement the delay in a manner that protects consumers and mitigates disruptions for lenders in the middle of this complex conversion,” he continued.

"CFPB continues to prove itself capable of working in a transparent, constructive manner throughout this process, as was evident recently when they announced their intent to delay enforcement of lenders once the rules were to go into effect,” said Stevens. "MBA looks forward to continuing to work with the CFPB over the next several months as the agency works to fine-tune its approach towards implementing this complex rule."

National Association of Realtors President Chris Polychron, also an executive broker with 1st Choice Realty in Hot Springs, Arkansas, echoed similar praise and said, “The action announced today by the CFPB is a welcome step. NAR has long advocated the need to avoid implementing the new regulation during the peak summer selling season.”
“NAR welcomes the CFPB’s proposed extension to October 1, 2015, as well as the earlier “sensitivity” they offered to companies making a good-faith effort to comply with the new TRID regulation,” Polychron said.

He concluded saying, “Realtors appreciate that the CFPB has demonstrated an understanding of the need for additional time to accommodate the interests of the many consumers and providers.”

“This extension will help protect consumers from disruptions during a traditionally busy period for home purchases. It will also help to assure new loan origination systems and compliance software under development by lenders and the vendors on whom they rely will be adequately installed and debugged, and staff training completed, before the effective date,” said Frank Keating, the American Bankers Association president and CEO.

 “ABA also thanks CFPB for their announced intent to maintain an initial supervisory and enforcement approach that takes into account good-faith efforts by lenders to comply. The TRID rules are among the most complex with which the banking industry has had to come into compliance, and the quality of compliance should be expected to improve based on the industry’s learning curve once systems go live,” said Keating.

National Association of Federal Credit Unions President and CEO Dan Berger said such a move is widely welcomed by credit unions, but more is needed.

“This two-month delay would give credit unions much-needed time to complete their testing and update processes as they seek to comply with this complex rule,” Berger said. “However, NAFCU believes the bureau and the National Credit Union Administration still must take credit unions' good-faith efforts to comply into account – beyond the Oct. 1 deadline.”

NAFCU strongly urged a delay in implementation of the TILA/RESPA requirements, which had been set to take effect Aug. 1.


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