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CFPB Announces “Sensitive” Approach

Published Friday, June 5, 2015

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 Truth in Lending Act and Real Estate Settlement Procedures Act Integrated Disclosure (TRID) regulation that goes into effect on August 1, 2015.  

According to the CFPB communication, “We also delivered a letter to Members of Congress this week where we said that our oversight of the implementation of the TILA-RESPA Integrated Disclosure rule will be sensitive to the progress made by those entities that have squarely focused on making good-faith efforts to come into compliance with the rule on time. We have spoken with our fellow regulators to clarify this approach.

Our statement of this approach is intended to ease some of the concerns we have heard about this transition to new processes in the coming months and is consistent with the approach we took to implementation of the Title XIV mortgage rules in the early months after the effective dates in January 2014.”

NAR has described the announcement as a net win, but less than what some Members of Congress requested, which was a hard deadline five-month testing or “grace” period. NAR also credits member efforts during the 2015 REALTOR® Legislative Meetings and Trade Expo that more than 275 U.S. Senators and Representatives signed onto a letter to CFPB Director Richard Cordray to ask for the clarification.    

The CFPB has issued a fact sheet with additional details. Click here to access.