Stevens: CFPB Listened to Input of MBA

Enforcement of compliance with the new RESPA/TILA disclosurernforms has been postponed.  As appearedrninevitable after almost unanimous testimony in favor of a delay at a HousernFinancial Services Committee meeting in mid-May, the Consumer FinancialrnProtection Bureau (CFPB) announced on Wednesday that they would allow lenders additionalrntime to come into full compliance with the so-called TRID rule.  Implementation of the rule and use of the disclosurernforms will still begin on August 1.</p

Testimony at the FSC hearing made it clear that lenders werernfacing vendor issues over installation of the necessary software for thernimplementation and that those delays would interfere with training for use ofrnthe software and forms and of quality insurance procedures.  Several members of the committee hadrnpreviously introduced legislation seeking to provide safe harbor for lenders untilrnJanuary 1, 2016.</p

CFPB Director Richard Cordray said the delay came inrnresponse to considerable input received from stakeholders and said, “I havernspoken with our fellow regulators to clarify that our oversight of the implementationrnof the Rule will be sensitive to the progress made by those entities that havernsquarely focused on making good-faith efforts to come into compliance with thernRule on time. My statement here of this approach is intended to ease some ofrnthe concerns we have heard about this transition to new processes in the comingrnmonths.” </p

It is unclear whether a new date has been sent for enforcingrnthe TRID rule.<br /<br /Mortgage Broker Association President and CEO DavidrnH. Stevens said, "MBA welcomes the news that the CFPB will recognize therngood faith efforts of lenders to comply with TRID by delaying enforcement for arnperiod after the new rules go into effect on August 1^st.  Afterrnspeaking with Director Cordray, I believe the Bureau has listened to the inputrnof MBA as well as other stakeholders about how best to enforce TRID. With sornmany difficulties around integrating systems, the industry needs flexibility tornensure consumers do not incur costs or lose home sales due to unforeseenrnproblems.  This enforcement grace period is a win/win for the industry andrnconsumers alike.

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