A Regulatory & Legislative Advisory for Compliance Professionals
Inside . . .
2 QM Rules Continue
to Tighten Credit
3 Servicing Lapses
Cited in CFPB Report
3 CFPB Unveils
4 CFPB Info-Gathering Power Must
4 ABA: Solicit
4 2015 Rulemaking
6 HFIAA Flood
6 Most of ABA
Petition on Mobile
Focusing on Change
Bank Secrecy Act
8 US Money
CFPB TO DELAY TRID EFFECTIVE DATE TO OCTOBER 3
On June 24, the Consumer Financial Protection Bureau issued a formal proposal
postponing the effective date of the TILA-RESPA integrated disclosures from August 1
to Saturday, October 3.
The proposal follows an announcement by Director Richard Cordray on June 15 that
the bureau would delay the effective date to avoid closing headaches as the busy fall
home buying season kicks off. "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," Cordray said. "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."
The bureau set the effective date for a Saturday to give the industry time over a
weekend to reconfigure and test systems. Comments on the proposed delay are
due by July 7.
ABA welcomed the news. "This extension will help protect consumers from disruptions
during a traditionally busy period for home purchases," said ABA’s Frank Keating. "It
will also help to ensure that 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."
Keating also thanked the CFPB for its announced intent to take good-faith compliance
efforts into account in its initial supervisory and enforcement approach. "The TRID
rules remain among the most complex with which the banking industry has had to
comply, and the quality of compliance should be expected to improve based on the
industry's learning curve once systems go live," he said. Read the proposed rule.
Read the announcement.
ABA has engaged in an aggressive months-long advocacy effort with the CFPB and
legislators to persuade the agency to delay the rule or provide a hold-harmless period
after the rule takes effect for lenders that make good-faith efforts to comply. In a
survey shared with the bureau last month, ABA found that a large majority of banks
did not expect to receive their new TRID-compliant systems from vendors until July or
later, leaving little to no time to test systems and train staff.
The postponement of TRID’s effective date is a better result for bankers than a mere
announcement for a restrained enforcement period because it eliminates both
enforcement and private litigation/class-action risks for the postponement period while
providing additional time to install and test new systems.