Industry pushes back against TRID

by Justin da Rosa14 Jul 2015
It may have already been pushed back a number of times, but industry professionals across the country are calling for even further delays of the “Know Before You Owe” rule change.

As it stands, the current date the TILA RESPA Integrated Disclosure (TRID) changes will go into effect is October 3 of this year. The original date was August 1.

“We also greatly appreciate the CFPB’s extraordinary work in developing the TRID rule itself, which we believe--when finally implemented--will make the mortgage process considerably more understandable and navigable for consumers, an objective we have long shared,” Pete Mills, senior vice president, Residential Policy and Member Services for the Mortgage Bankers Association, wrote in a letter to the CFPB. “Notwithstanding, experience has shown that the TRID rule is far more complicated and wide ranging than any other rule previously issued by the CFPB. It is causing significant implementation challenges which will increase as the process moves forward and the rule becomes effective.”

The MBA is the latest to call for an extension to the deadline.

Last week, the Credit Union National Association petitioned the Consumer Financial Protection Bureau to push the effective date to January 1, 2016.

“Allowing the industry ample time to properly plan for compliance with this major rule will be crucial to ensure proper implementation,” the association wrote in a letter to the CFPB. “This transition will be cumbersome for most, so any additional time will greatly benefit the industry, minimize costs and provide a smooth transition to the new regulatory regime.”

And while the MBA isn’t asking for a 2016 implementation date, it does believe more time is needed for industry players to prepare – and this it should provide a grace period for lenders and originators to acclimatize themselves to the new requirements.

“MBA not only strongly supports this change in the implementation date, but also supports making this effective date the start of a temporary “good faith” implementation and enforcement period,” Mills wrote. “During this period, we urge that the rule expressly require that all covered persons implement the rule in good faith beginning October 3 and that the CFPB will examine entities using a ‘good faith standard’ from that date.

“Following the conclusion of the period—which we believe should span at least six months—the CFPB will commence regular enforcement and examination,” Mills added.



Is TILA-RESPA a good or bad thing long term?