On June 17, Consumer Financial Protection Bureau Director Richard Cordray issued the following statement on the Know Before You Owe mortgage disclosure rule:
“The CFPB will be issuing a proposed amendment to delay the effective date of the Know Before You Owe rule until Oct. 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 National Association of Realtors has been leading the effort to ensure an effective implementation of the TRID regulation.
NAR President Chris Polychron issued the following statement in response:
“The action announced today by the CFPB is a welcome step. NAR has long advocated the need to avoid implementing the new regulation during the peak summer selling season. NAR welcomes the CFPB’s proposed extension to Oct. 1, 2015, as well as the earlier ‘sensitivity’ they offered to companies making a good-faith effort to comply with the new TRID regulation. We will continue to work with CFPB to minimize any possible market disruptions or uncertainty that could develop following the implementation. Realtors appreciate that the CFPB has demonstrated an understanding of the need for additional time to accommodate the interests of the many consumers and providers.”
Click here for more information on TRID.
* Information taken from the Consumer Financial Protection Bureau and the National Association of Realtors.
— Reyne Stapelmann is a broker associate with Berkshire Hathaway Home Services, California Properties and the 2015 president of the Santa Barbara Association of Realtors. Contact her at reynestapelmann@cox.net or 805.705.4353. The opinions expressed are her own.