The Consumer Financial Protection Bureau (CFPB) has announced a proposed amendment to the Know Before You Owe mortgage rule, commonly known as the TILA-RESPA Integrated Disclosure (TRID) rule, which would move the effective date of the rule to Saturday, October 3, 2015.
According to CFPB, the Bureau is issuing the proposed amendment to correct an "administrative error" that would have pushed the TRID effective date back at least two weeks from its original effective date of August 1, 2015.
The CFPB believes the new proposed effective date of Saturday, October 3, will result in a smoother transition to the new rule, which requires easier-to-use mortgage disclosure forms that clearly lay out mortgage terms for a homebuyer, according to the Bureau. The Saturday launch will give the industry time to test new systems configurations and launch new systems related to the rule over the weekend, and is consistent with original plans to launch the rule on Saturday, August 1, according to CFPB.
To view a copy of the proposal, click here. The proposal will be open for public comment until July 7.
The Bureau first announced on June 17 they would be issuing the proposed amendment to push back the TRID launch date. At that time, CFPB Director Richard Cordray announced that the proposed effective date was being moved from August 1 to October 1.
"We made this decision to correct an administrative error that we just discovered in meeting the requirements under federal law, which would have delayed the effective date of the rule by two weeks," Cordray said last week. "We further 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."