Yesterday afternoon, Consumer Financial Protection Bureau (CFPB) Director Richard Cordray announced that, due to an administrative error, his Bureau would be delaying the effective date of the Truth in Lending Act, Real Estate Settlement Procedures Act, Integrated Disclosure (TRID) regulation required by the Dodd-Frank Act from August 1 until October 1, 2015. Representative Andy Barr (R-KY) issued the following statement concerning this policy change:
“The Bureau continues its day-late and dollar-short approach to providing the regulatory relief requested by the public, the housing industry, and the 254 Members of Congress who signed my letter to Director Cordray requesting a grace period for TRID enforcement through the end of the year.
“The Bureau’s decision to delay the TRID implementation date has some benefits. Real estate businesses will appreciate the additional time to finalize their new procedures. Buyers will no longer face the threat of delays at closing during the busiest home buying season of the year. However, this temporary delay does nothing to allow industry participants to test their systems in the real world before the effective date. The consequences may be unnecessary fines for the industry and delays in real estate closings for American families this fall.
“Since this delay was the result of an error by the Bureau, I hope they will see the light that innocent mistakes by buyers and sellers of real estate trying to comply in good faith with this complicated new rule may happen – which is precisely why I will continue to advocate for an initial grace period for TRID enforcement after the rule goes into effect.”