TRID Implementation Delayed; MBA's Stevens Comments

Implementation of the Know Before You Owe mortgage disclosure rule has been delayed until October 1.  The rule was originally supposed to be implemented on August 1 although the Consumer Financial Protection Bureau had recently announced that enforcement of the rule and use of the associated TRID disclosure forms would not begin until January 1, 2016. 

In announcing the decision to delay CFPB Director Richard Cordray said, "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."

He said the public will have an opportunity to comment on this proposal and a final decision is expected shortly thereafter.  The Director did not say whether enforcement would proceed as scheduled at the first of the year or also be further delayed.

The Mortgage Bankers Association welcomed the decision to delay.  Its President & CEO David H. Stevens said,  "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.  

"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.