SAN JOSE, CA – The Consumer Financial Protection Bureau (CFPB) announced today that it will delay implementation of the new TRID rule until October 1, 2015. The rule was originally set to take effect August 1, 2015.
TRID will replace the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA) forms that lenders have provided to consumers who are applying for mortgage loans.
Under TRID, the Good Faith Estimate (GFE) and initial TILA Disclosure will be combined into one form, the Loan Estimate, which must be delivered three days after receiving a consumer’s application.
TRID also combines the HUD-1 and final TILA Disclosure into another form, the Closing Disclosure, which must be provided to consumers at least three days before a loan is consummated.
The Santa Clara County Association of REALTORS® advocated successfully for this delay in both implementation and enforcement of the new rules so that REALTORS®, consumers and other parties involved in real estate transactions could better assess the changes in disclosure requirements. All three of our local members of Congress including Rep. Zoe Lofgre, Rep. Mike Honda, and Rep. Anna Eshoo signed a letter along with 275 of their colleagues asking the CFBP to delay enforcement of the new rule while the real estate industry adjusts to the new process and forms.
The CFPB announced today that they “believe that the additional time included in the proposed effective date would better accommodate the interests of the many consumers and providers whose families will be busy with the transition to the new school year at that time.”
Previously the Consumer Financial Protection Bureau (CFPB) announced that it would be “sensitive” to companies that make a good-faith effort to comply with the new TRID eule.
Past President of SCCAOR, Carl San Miguel said, “Thank goodness for REALTORS® who understand the real estate business and are advocating to ensure that effects on consumers are minimized in any new rule changes from the federal government.”
About the Santa Clara County Association of REALTORS®
SCCAOR, established in 1896, is California’s oldest and Northern California’s largest real estate association. We represent about 10,000 REALTORS® and affiliate members. SCCAOR exists to meet the business, professional and political needs of its members and to promote, protect homeownership and private property rights.