TRID Implementation Granted Grace Period
After multiple companies throughout the industry called for a grace period, the CFPB has announced they will honor a good-faith enforcement of the implementation of TRID.
TRID (TILA-RESPA Integrated Disclosure) was brought forth by the CFPB (Consumer Financial Protection Bureau). The original implementation date of August 1st, 2015 remains unchanged.
Lenders have been arguing that the implementation of the new rule does not give lenders an appropriate amount of time to prepare for a seamless and successful transition as the new disclosures are not permitted to be used prior to the August 1st date. Testing technological systems and processes, therefore, is impossible until the rule has already launched and in the public eye.
With the grace period now granted, the CFPB is willing to postpone repercussions against companies that do not fully comply if they prove a good-faith effort in the implementation of TRID. At the very least, the grace period will run through the end of 2015 giving lenders nearly four months to work through issues and perfect the process. The entire mortgage lending industry will be impacted by the new TRID rule including appraisers and escrow agents.
Still, banks and lenders are pushing to extend the August 1st deadline altogether or implement a testing period as well. While many have turned to consultants and outside vendors to help prepare for the massive overhaul on the lending process, many are not prepared for full compliance in early August.
Stay tuned for more updates on this hot topic.
*This is not meant to be legal advice. Please seek legal counsel as you implement TRID. CMG Financial is dedicated to fully complying with all requirements in regards to TRID.