It’s official – TRID will take effect on October 3, 2015. As we have previously discussed, ever since the Dodd-Frank Act mandated new, regime-changing, mortgage disclosures, the banking industry has been diligently preparing for the day that the Consumer Financial Protection Bureau (CFPB) implements a Truth-in-Lending Act (TILA)/Real Estate Settlement Procedures Act (RESPA) Integrated Mortgage Disclosures Rule – and now we know that that day will be October 3, 2015.
TRID was originally slated to go into effect on August 1, 2015 but, on June 17, 2015, CFPB Director Richard Cordray issued a statement proposing a delay of TRID’s effective date until October 1, 2015. Then, on June 24, 2015, the CFPB followed up on the Director’s statement by issuing a proposed rule that would extend TRID’s effective date until October 3, 2015 (the additional 2 day delay allowed for a Saturday implementation, a schedule preferred by industry stakeholders).
During the public comment period on the proposed postponement, the CFPB received over 1300 comments, with the vast majority of the commenters supporting an extension of the effective date. Finally, on July 21, 2015, the CFPB provided the banking industry with much needed certainty by “adopting an October 3, 2015 effective date for the TILA-RESPA Final Rule and Amendments.” In addition to establishing the October 3, 2015 effective date for TRID, the CFPB’s final rule also included technical corrections to TRID that will also become effective on October 3, 2015.
Within their comments on the proposed extension, many industry stakeholders, including large banks, requested that – following implementation – the CFPB institute a three or six-month formal grace period during which the CFPB would forgo TRID enforcement. The CFPB acknowledged the grace period requests but, ultimately, decided not to adopt a “formal” grace period. However, within the final rule, the CFPB reiterated, and quoted from, the CFPB Director’s June 3, 2015 letter to Congress which stated that the CFPB’s “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 the compliance with the Rule on time” – a position that many in the banking industry consider suggestive of an “informal” grace period, as long as an entity makes good-faith efforts to comply with TRID.
A copy of the final rule is available at the following link.
