UPDATE (06/18/2015): TRID launch date has been pushed back to October 1, 2015. [Details on Inman News]
The Consumer Financial Protection Bureau (CFPB) has set August 1 as the date for introducing new TILA-RESPA Integrated Disclosure (TRID) regulations. If you aren’t familiar with them – you need to be (there’s a solid Inman article on TRID and NAR has some resources you can read through).
In reality, the CFPB merged the Real Estate Settlement Procedures Act (RESPA) with the Truth In Lending Act (TILA) and starting on August 1, 2015, all transactions will need to use new disclosure forms. There has been a lot of concern as the data approaches about whether there was sufficient time to train everyone on the proper use of the new forms and how enforcement would handle good faith errors. Many smaller banks rely on vendors for their compliance paperwork, so there was also concern about getting the software in place.
In May, RE/MAX was among the industry leaders lobbying for a grace period. RE/MAX CEO Dave Liniger submitted a letter to the Director of CFPB in support of that effort, noting:
“TRID is a complex regulation that involves timelines, disclosures, procedures and forms that have never been used before. Undoubtedly the transition will cause significant confusion for the home-buying consumer, the very individuals TRID has been designed to assist. …It is our strong belief that a ‘good faith grace period’ will benefit everyone involved.”
This industry lobbying effort led to a bipartisan group of 250 members of Congress submitting a request for a grace period through the end of 2015. On June 3, the CFPB replied. CFPB Director Richard Cordray announced that they would respect Congress’s request.