TRID Start Date Bumped to Oct. 3
NAR | July 22, 2015
The Consumer Financial Protection Bureau has announced that its Know Before You Owe mortgage disclosure rule will take effect Oct. 3. Read more: Don't Get Thrown by Doc Overhaul The TILA-RESPA Integrated Disclosure rule is expected to have sweeping changes on the real estate industry by merging the HUD-1 Settlement Statement, the Good Faith Estimate, and the Truth-in-Lending disclosure form into two new closing forms: a Loan Estimate and a Closing Disclosure. The new rule also aims to provide consumers with more time to review the total costs of their mortgage prior to closing. The Loan Estimate form is due to consumers three days after they apply for a loan, while the Closing Disclosure form is due three days prior to closing. "The bureau believes that moving the effective date may benefit both industry and consumers with a smoother transition to the new rule," the CFPB said in a statement. "The bureau further believes that scheduling the effective date on a Saturday may facilitate implementation by giving industry time over the weekend to launch new systems configurations and to test systems." The original start date for the new rule had been set for Aug. 1, but after receiving feedback from lawmakers as well as real estate and mortgage industry officials, the agency decided to postpone the start date until after the traditionally busy summer real estate season. "August is a busy time for REALTORS®, as home buying and selling picks up around the summer season," says Chris Polychron, president of the National Association of REALTORS®. "CFPB's recognition of the challenge that an August implementation posed for the industry is a big win for REALTORS®, for lenders, for consumers, and for everyone involved. An Oct. 3 implementation will help ensure that our industry has time to prepare for the changes ahead while helping consumers get to closing without delay." NAR says that it will continue to keep its members updated on the rule and "ensure they have the tools to comply with the changes coming their clients' way." "We will also continue communicating any REALTOR® concerns about the implementation to the CFPB and look forward to a continued partnership as the TRID rule goes into effect later this year," Polychron says.