The CFPB’s proposed amendment would push the rules effective date to Oct. 3. The amendment comes just a week after the agency announced it would push the rule back
to Oct. 1 from its original effective date of Aug. 1.
The new proposed effective date is a Saturday. The CFPB believes that launching the rule on a weekend may give the industry extra time to launch and test new compliance systems.
The new rule will consolidate the TILA-RESPA mortgage disclosure forms into two new forms: the Loan Estimate and the Closing Disclosure. While the rule is meant to give borrowers more time to review the cost of their mortgage, many in the industry worried that mistakes in the early days of enforcement would lead to accidental noncompliance. Earlier this month, after pressure from both industry groups and Congress, the CFPB announced that it would institute a good-faith grace period
after the rule took effect, during which it would not be enforced.
The Consumer Financial Protection Bureau issued a proposed amendment today that would once again push back the effective date of the Know Before You Owe disclosure rule – by two whole days.