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CFPB Announces Grace Period For TRID Implementation

Published: June 04, 2015

CFPB Announces Grace Period For TRID Implementation

June 4, 2015--Sorohan, Mike msorohan@mba.org

The Consumer Financial Protection Bureau, in response to concerns from the Mortgage Bankers Association and other industry trade groups as well as members of Congress, announced yesterday a grace period for enforcement of new Truth in Lending Act/Real Estate Settlement Procedures Act Integrated Disclosures requirements set to go into effect August 1.

Although CFPB Director Richard Cordray said the Bureau would not delay the new rules’ effective date, it recognized that mortgage lenders and servicers were making good-faith efforts toward compliance with the complex rule.

MBA President & CEO David Stevens, who held personal discussions with Cordray on TRID implementation, issued a statement, saying MBA welcomes the news that the CFPB will recognize the good faith efforts of lenders to comply with TRID by delaying enforcement for a period after the new rules go into effect on August 1.

“After speaking with Director Cordray, I believe the Bureau has listened to the input of MBA as well as other stakeholders about how best to enforce TRID,” Stevens said. “With so many difficulties around integrating systems, the industry needs flexibility to ensure consumers do not incur costs or lose home sales due to unforeseen problems. This enforcement grace period is a win/win for the industry and consumers alike.”

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