The extension provides an opportunity for everyone to better prepare for the transition.
Chicago, IL (PRWEB) June 29, 2015
The Consumer Financial Protection Bureau announced a decision to move the implementation date back for the TILA-RESPA Integrated Disclosure rule to Oct. 1. This is welcoming news to professionals working within the lending industry such as The Federal Savings Bank.
TRID, also known as the "Know Before You Owe" Mortgage Disclosure Rule, is intended to help increase consumers' understanding of the loan application process. While the regulation would benefit the consumer and simplify the process for both the lender and borrower, TRID comes in the wake of a whirlwind of newly implemented regulations.
Inman, a news source for professionals in real estate, indicated on June 18th that the mortgage industry has seen a number of new regulations over the past two years. A high volume of new rules and guidelines is difficult to implement quickly and efficiently.
TRID pushed back
The Mortgage Bankers Association emphasized on June 17th its appreciation for the CFPB's understanding and the action it took to accommodate the needs of those working in the lending industry.
"MBA welcomes the decision by the CFPB to issue a proposed amendment to delay the implementation of TRID until October 1," said David H. Stevens, president and CEO of MBA. "The complexity of this rule, which impacts not just mortgage disclosures but also the business processes behind the entire real estate transaction, warrants the additional time to get it right and ensure that consumers are not adversely effected by the transition."
The CFPB's work with the industry allows for more constructive and beneficial transitions into the adoption of a new regulation. The MBA indicated it will continue to work with the CFPB to help with the adoption of this complex new rule.
Behind the date change
CFPB officially released a statement on June 17 regarding the new implementation date for TRID.
"The CFPB will be issuing a proposed amendment to delay the effective date of the Know Before You Owe rule until October 1, 2015," said Richard Cordray, the director of CFPB. "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."
Benefits for the October 1 implementation date
This change bodes well not only for the lenders providing loans and looking to adhere to the new guideline, but also for consumers. The extension provides an opportunity for everyone to better prepare for the transition.
In addition, those in the lending industry, like loan officer at The Federal Savings Bank, will be capable of providing consumers with more information regarding TRID and what it means for the consumer. More time allows for a deeper understanding and, ultimately, better customer service for those applying for a home loan.
Contact the Federal Savings Bank, a veteran owned bank, to learn more about mortgages.