Error Causes Delay Of Know Before You Owe Rule
The Consumer Financial Protection Bureau (CFPD) announced recently a proposal to delay the effective date of the TILA-RESPA Integrated Disclosure (TRID) rule until October 1 rather than August 1 owing to what the CFPD Director called an administrative error.
TRID, also known as the "Know Before You Owe" Mortgage Disclosure Rule, is intended to help increase consumers' understanding of the loan application process. While the regulations are expected to benefit consumer and simplify the process for both the lender and borrower, the mortgage rule changes are significant and come with stiff penalties for the industry in cases of noncompliance.
As it now stands the implementation date of October 1 has been backed off again until October 3, 2015. The CFPB stated that it believes that scheduling the effective date on a Saturday may help implementation by giving the industry over the weekend to launch and test new systems and procedures.
What Does TRID Mean To Me?
Do keep in mind that its the mortgage industry that is principally affected by the new TRID rules, however there are ramifications for home buyers, home sellers as well for the real estate professionals representing them. If youre contemplating a move in the next few months be sure to contact your lender, or me, to discuss how you may be affected.
If TRID is something youd like to read more about, please check out my post that explains in detail the major changes coming to the closing table.