Nearly 300 lawmakers from all over the political spectrum came together to urge the Consumer Financial Protection Bureau to offer a grace period for banks, credit unions and other lenders to comply with a new mortgage disclosure rule.
Letters from both the House and the Senate urged the CFPB to grant lenders a delayed date of Dec. 31—a reprieve from the standing August 1 deadline–before enforcing the new rule.
The rule, which would integrate the Truth in Lending Act and the Real Estate Settlement Procedures Act into one form, now called TRID, is meant to streamline the disclosure process for consumers closing on a home. While lenders and REALTORS may be open to the change, the hope for more time to make the integration.
“As you know, August is a traditionally busy month in the real estate industry. Many real estate agents, lenders, and others who help our constituents buy or refinance homes are concerned about implementation of the new TRID disclosure forms, with no grace period, during the peak home buying season,” read a March 21 bipartisan letter signed by 41 senators.
The CFPB declined to comment on the letters, and we will have to wait and see whether a deadline extension will be issued.
Source: The American Banker