“There will be time for [financial institutions] to work to get it right and not have to be perfect on the first day,” Cordray said, according to ABA Banking Journal.
Cordray also said the regulators’ approach to TRID oversight in the early months “will be diagnostic, not punitive.”
It seems the regulators has listened to industry players who have voiced concerns about the early days of TILA-RESPA, which is set to go into effect October 3.
Over 20 real estate industry trade groups announced in late July their support of HR 3192, the Homebuyer Assistance Act, which will provide a “hold-harmless” grace period for TRID enforcement for those who make efforts to comply.
“A hold-harmless period helps ensure consumers’ real estate closings will not be disrupted after this complicated regulation’s Oct. 3 effective date,” the industry groups wrote in a letter to the CFPB. “We note that 250 Members of the House and 41 Senators have written to CFPB urging the action that this legislation would mandate.”
Surely, that is welcome news to brokers across the country who have spent months preparing for the “Know Before You Owe” rule.
Speaking before the House Financial Services Committee Wednesday, CFPB Director Richard Cordray confirmed there will be a period of time allowed for lenders and originators to acclimatize themselves to the upcoming rule change.