CFPB Finalizes Two-Month Extension of Know Before You Owe Effective Date
WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today issued a final rule moving the effective date of the Know Before You Owe mortgage disclosure rule, also called the TILA-RESPA Integrated Disclosures rule, to October 3, 2015. The rule requires easier-to-use mortgage disclosure forms that clearly lay out the terms of a mortgage for a homebuyer. The Bureau issued the change to correct an administrative error that would have delayed the effective date of the rule by at least two weeks, until August 15, at the earliest.
The Bureau is finalizing Saturday, October 3 as the effective date. More info here.
Proposed Effective Date of October 3, 2015
Today the CFPB issued a proposed amendment to move the effective date of the
TILA-RESPA Integrated Disclosure (TRID) rule to October 3, 2015.
The latest statement reads, “The Bureau believes that moving the effective date may benefit both industry and consumers with a smoother transition to the new rules. The Bureau further believes that scheduling the effective date on a Saturday may facilitate implementation by giving industry time over the weekend to launch new systems configurations and to test system.”
You can read the complete extension notice on the CFPB website.
This is still a proposed date open to public comment until July 7. As we stated last week, this date adjustment does not alter our directive to aggressively and diligently work on the initiative internally and with our external customers.
We will continue to monitor the proposed date change, and provide information as it becomes available.
Proposed Amendment to Delay TRID Effective Date to October 1st
Late yesterday, the Consumer Financial Protection Bureau's Director, Richard Cordray, issued a statement on the implementation date of the TILA-RESPA Integrated Disclosure (TRID) rule. It states, in part:
"The CFPB will be issuing a proposed amendment to delay the effective date of the Know Before You Owe rule until October 1, 2015." This decision is to correct an administrative error that would delay the effective date by two weeks, per federal law.
Our CFPB project teams continue to aggressively and diligently work on this initiative to ensure that our Stewart Title offices are well prepared to meet the new requirements. We will be working closely with our lender clients to understand the impact this will have on their schedules, and determine what adjustments we will make to our implementation and training schedules due to the implementation delay.
We will be actively monitoring this situation and will provide more information as it becomes available. Visit Stewart.com/cfpb for information and resources provided by the CFPB and the American Land Title Association (ALTA).
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Stewart Blog - CFPB Articles
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