Consumer Financial Protection Bureau Heeds Advice from Members of Congress
Consumer Financial Protection Bureau Heeds Advice from Members of Congress
TILA-RESPA Integrated Disclosure rule delayed until October 1st, 2015
WASHINGTON, D.C. – U.S. Congresswoman Joyce Beatty (OH-03) applauded the Consumer Financial Protection Bureau's (CFPB) announcement this week to delay the implementation of the Truth In Lending Act-Real Estate Settlement Procedures Act (TILA-RESPA) Integrated Disclosure rule until October 1st, 2015. The integrated disclosure is intended to simplify the home closing process for borrowers; however, Members of Congress and stakeholders voiced concerns about implementing new procedures during the busiest time of the year for the housing market.
"I am pleased that CFPB listened to the concerns of Members of Congress and stakeholders by delaying the effective date of the TILA-RESPA Integrated Disclosure rule," said Rep. Beatty. "We all want borrowers to understand their mortgages, and the extended deadline will allow time for lenders and provide seamless enhanced service to customers."
Rep. Beatty proactively spearheaded meetings with realtors, lenders, and other stakeholders from Central Ohio to develop a solution to challenges emerging from the original disclosure deadline. In May, 2015, Rep. Beatty spoke with CFPB Director Cordray to discuss her support for extending the compliance deadline.
The original implementation date of the TILA-RESPA Integrated Disclosure rule was originally scheduled for August 1st. Rep. Beatty joined 253 Members of Congress in sending a letter to CFPB Director Cordray on May 20, 2015 encouraging a "grace period" for lenders seeking to comply in good faith from August 1st through the end of 2015.
"I urge the public to comment on this proposal and look forward to a final decision that captures the concerns of the American people and would allow market participants the ability to test their systems and procedures ahead of the final implementation date," added Beatty.
Below is the letter signed by Rep. Beatty and 253 Members of Congress:
May 20, 2015
The Honorable Richard Cordray
Director
Consumer Financial Protection Bureau
1700 G Street, N.W.
Washington, D.C. 20552
Dear Director Cordray:
The undersigned Members of Congress acknowledge that the Consumer Financial Protection Bureau (CFPB or Bureau) has done significant work on the TILA-RESPA Integrated Disclosure (TRID) regulation. Nevertheless, this complicated and extensive rule is likely to cause challenges during implementation, which is currently scheduled for August 1, 2015, that could negatively impact consumers. As you know, the housing market is highly seasonal, with August, September, and October consistently being some of the busiest months of the year for home sales and settlements. By contrast, January and February are consistently the slowest months of the year for real estate activity. We therefore encourage the Bureau to announce and implement a "grace period" for those seeking to comply in good faith from August 1st through the end of 2015.
Even with significant advance notice, understanding how to implement and comply with this regulation will only become clear when the industry gains experience using these new forms and processes in real-life situations. As the TRID regulation does not provide lenders an opportunity to start using the new disclosure form prior to the August 1st implementation date, market participants will not be able to test their systems and procedures ahead of time, which increases the risk of unanticipated disruptions on August 1st. That is why we believe that a grace period for those seeking to comply in good faith from August 1st through the end of 2015 would be particularly useful in these circumstances. During this time, industry can provide data to the CFPB on issues that arise so that the Bureau and industry can work together to remove impediments to the effectiveness of the rule.
Thank you for your time and consideration. If we may be of assistance, please do not hesitate to contact us.
Sincerely,
______________________ Andy Barr MEMBER OF CONGRESS | ______________________ Carolyn Maloney MEMBER OF CONGRESS | ______________________ Maxine Waters MEMBER OF CONGRESS |
List of signatories: