The Consumer Financial Protection Bureau (“CFPB”) said that it will provide a grace period to financial institutions that have made a good-faith effort in meeting the August 1, 2015, deadline for the implementation of the TILA-RESPA Integrated Disclosure (“TRID”) regulations.
In response to letter from a bipartisan coalition of Members of Congress that requested a grace period for lenders struggling to implement the new TRID rule, CFPB Chairman Richard Cordray replied:
“…in response to considerable input we have received from you and your constituents, I have spoken with our fellow regulators to clarify that our oversight of the implementation of the Rule will be sensitive to the progress made by those entities that have squarely focused on making good-faith efforts to come into compliance with the Rule on time. My statement here of this approach is intended to ease some of the concerns we have heard about this transition to new processes in the coming months and is consistent with the approach we took to implementation of the Title XIV mortgage rules in the early months after the effective dates in January 2014, which has worked out well.”
According to a HousingWire report, the grace period will be open-ended but should run through the end of 2015 at the very least.
HousingWire also reported that U.S. Rep. Blaine Luetkemeyer, R-Mo., Chairman of the Housing and Insurance Subcommittee, and U.S. Rep. Randy Neugebauer, R-Texas, Chairman of the Financial Institutions and Consumer Credit Subcommittee, expressed disappointment that the CFPB had not granted the mortgage industry a more formal hold-harmless period:
“TILA-RESPA integration is a significant event for our nation’s mortgage and housing markets. We appreciate Director Cordray taking a first step in indicating a regulatory ‘sensitivity’ to good faith efforts to meet requirements of the new disclosure rules. However, we are very disappointed the Bureau has failed to provide necessary market certainty with a formal hold harmless period – especially given the massive bipartisan Congressional interest. Nearly 300 Senators and House Members have written to Director Cordray asking for a formalized hold harmless period. Anything short of that is unacceptable.”
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