Both Congress and industry groups had been pushing for a grace period, saying the new rule didn’t provide lenders an opportunity to implement the new rule before August. The resulting inability to test their systems, lenders worried, might mean unanticipated problems with implementation.
CFPB Director Richard Cordray sent a letter to Congress this morning officially announcing a grace period.
“We share your desire for a smooth and successful implementation of the Rule, and we continue to work closely with all stakeholders to support that goal,” he wrote. “As we do so, and in response to considerable input we have received from your constituents, I have spoken with our fellow regulators to clarify that our oversight of the implementation of the rule will be sensitive to the progress made by those entities that have squarely focused on making good-faith efforts to come into compliance with the rule on time.”
The TILA-RESPA Integrated Disclosure rule will still go into effect on Aug. 1, but there will be a grace period on enforcement, according to the CFPB.