Archive for TRID

Feds State They Will Expect ‘Good Faith Efforts to Comply’ With TRID

US-FFIEC-LogoThe federal banking regulators (including the CFPB) confirmed in an Oct. 1 letter that “[e]xaminers will expect supervised entities to make good faith efforts to comply with the [‘Know Before You Owe’ TILA-RESPA Integrated Disclosure] Rule’s requirements in a timely manner.”

More specifically, “examiners will consider the institution’s implementation plan, including actions taken to update policies, procedures, and processes; its training of appropriate staff; and its handling of early technical problems or other implementation challenges.”

A copy of the letter issued by the Office of the Comptroller of the Currency (OCC) is available here.

The CFPB’s related press release is available here.

The regulators state that the member agencies of the Federal Financial Institutions Examination Council (FFIEC) “recognize that the mortgage industry has needed to make significant systems and operational changes to adjust to the requirements of the Rule, and that implementation requires extensive coordination with third parties.”

The FFIEC is comprised of principals of the following: the Consumer Financial Protection Bureau, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, the Office of the Comptroller of the Currency, and the State Liaison Committee.

CFPB Issues Final Rule Delaying TRID Effective Date to Oct. 3, 2015

The Consumer Financial Protection Bureau has issued its final rule confirming the delay of the effective date of the TILA-RESPA Integrated Disclosures (TRID) rule to Oct. 3, 2015.

A copy of the final rule is available at:  Link to Final Rule.

The final rule also makes certain technical corrections, including:

  1. Amending 12 CFR § 1026.38(i)(8)(ii) and (iii)(A) to “include, in the amount disclosed as ‘Final’ for Adjustments and Other Credits, the amount disclosed under § 1026.38(j)(1)(iii) for certain personal property sales, thus conforming the calculation of Adjustments and Other Credits on the Closing Disclosure and Loan Estimate;” and
  1. Amending 12 CFR § 1026.38(j)(1)(iv) to “include, in the amount disclosed as Closing Costs Paid at Closing, lender credits disclosed under § 1026.38(h)(3), thus conforming the disclosure of the borrower’s cash to close in the Calculating Cash to Close and the Summaries of Transactions tables on the Closing Disclosure.”

 

CFPB Proposes to Delay TRID to October 3, 2015

As referenced in our prior update, the federal Consumer Financial Protection Bureau (CFPB) issued a proposed rule to change the effective date for the “Know Before You Owe” TILA-RESPA Integrated Disclosure rule to October 3, 2015.CFPB

A copy of the proposed rule and request for public comment is available at: Click Here

The CFPB previously indicated the effective date would be delayed to Oct. 1, 2015.

The CFPB stated that it “is proposing a new effective date of Saturday, October 3,” explaining 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 systems. A Saturday launch is also consistent with existing industry plans tied to the original effective date of Saturday, August 1.”

The proposal will be open for public comment until July 7, 2015.

CFPB to Issue Proposed Amendment Delaying TRID Effective Date to Oct. 1, 2015

CFPBThe federal Consumer Financial Protection Bureau issued a brief press release yesterday, confirming reports that it would be issuing a proposed amendment to delay the effective date for the “Know Before You Owe” TILA-RESPA Integrated Disclosure (TRID) rule until Oct. 1, 2015.

A copy of the press release is available at:  Press Release.

The press release simply states:

“The CFPB will be issuing a proposed amendment to delay the effective date of the Know Before You Owe rule until October 1, 2015. 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. 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.”

According to the CFPB, “The public will have an opportunity to comment on this proposal and a final decision is expected shortly thereafter.”

Prior to the proposed amendment, the effective date for the “Know Before You Owe” TILA-RESPA Integrated Disclosure rule was Aug. 1, 2015, and would apply to transactions for which the mortgage lender or broker receives an application on or after that date.

 

CFPB Announces Leniency for Good Faith Efforts to Comply as to TRID Implementation, But No Formal Grace Period

In response to a letter from numerous Senators, and in response to “considerable input” from other members of Congress and various trade groups, the Consumer Financial Protection Bureau today announced that it will employ leniency in relation to implementation of the TILA-RESPA Integrated Disclosure Rule.

The CFPB’s letter states that the CFPB “will be sensitive to the progress made by those entities that have squarely focused on making good-faith efforts to come into compliance with the Rule on time,” and that the approach “is consistent with the approach we took to implementation of the Title XN mortgage rules in the early months after the effective dates in January 2014.”

However, the letter stops short of providing a formal grace period, “hold harmless” period, or stay of enforcement.

More specifically, the letter states:

“I have spoken with our fellow regulators to clarify that our oversight of the implementation of the Rule will be sensitive to the progress made by those entities that have squarely focused on making good-faith efforts to come into compliance with the Rule on time. My statement here of this approach is intended to ease some of the concerns we have heard about this transition to new processes in the coming months and is consistent with the approach we took to implementation of the Title XN mortgage rules in the early months after the effective dates in January 2014, which has worked out well.”

As you may recall, the CFPB stated in its “Supervisory Highlights” report for Winter of 2015 that “[m]ost of the Title XIV rules took effect in January 2014 and the CFPB commenced supervisory examinations for compliance four months after the effective date.” Our update as to the CFPB’s “Supervisory Highlights (Winter 2015)” report is available here:  Link to Prior Update.