Barbara Mishkin, writing in law firm Ballard Spahr’s CFPB Monitor blog, points out that several committee members have already called for the Consumer Financial Protection Bureau to institute a grace period after the rule takes effect. In March, Subcommittee on Housing and Insurance chairman Blaine Luetkemeyer (R-Mo.) wrote to CFPB Director Richard Cordray urging the agency to institute a “hold harmless” period of “restrained enforcement and liability” until Jan. 1, 2016.
Cordray responded to Luetkemeyer last month, but refused to make a commitment to instituting a grace period. While he didn’t rule it out, he wrote that the CFPB had “received extensive feedback that August was a comparatively better choice, given other operational imperatives for industry associated with the beginning of the calendar year that the traditionally slow pace of new applications in August.” Cordra told Luetkemeyer that the CFPB “plans to continue its active engagement in supporting industry and consumers throughout the implementation of the Integrated Disclosure Rule.”
The House Financial Services Committee has scheduled a May 14 hearing titled, “TILA-RESPA Integrated Disclosure: Examining the Costs and Benefits of Changes to the Real Estate Settlement Process.” While the committee hasn’t yet announced witnesses, it’s likely committee members will call for a delay in enforcement of the new integrated disclosure rule set to take effect in August.