CFPB WILL ISSUE PROPOSED AMENDMENT TO DELAY TRID UNTIL OCTOBER 1, 2015

The CFPB made a last minute surprise decision that they would be issuing a proposed amendment to delay the effective date of the TILA-RESPA Integrated Disclosure Rule “TRID” from August 1, 2015 to October 1, 2015.

Consumer Financial Protection Bureau “CFPB” Director Richard Cordray issued the following statement with respect to the TRID delay proposal:

“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.”

The financial services and real estate industry were growing increasingly concerned over the last few months with concerns about several LOS software systems not being ready by the August 1, 2015 deadline so this proposed delay would certainly provide some breathing room for their software integration activities.