CFPB Formally Delays The TILA-RESPA Final Rule (TRID) Effective Date

On July 21, 2015, the CFPB formally delayed the effective date of its Integrated Mortgage Disclosures Under the Real Estate Settlement Procedures Act (Regulation X) and the Truth in Lending Act (Regulation Z) (TILA-RESPA Final Rule or TRID) and TILA-RESPA Amendments. The final rule adopts the CFPB June 24, 2015 proposal to delay the effective dates of TRID and the Amendments. The Bureau reiterated its concern that a longer delay in implementation would impose unnecessary costs on both consumers and the segments of industry working to implement the final rule.

Key Takeaways:

The delay is now official and will be codified in the Federal Register. The CFPB highlighted that the compliance date (October 3, 2015) is a Saturday, which should help lenders migrate systems over the weekend. The CFPB again declined to define a formal "grace period" or an official "hold harmless" period that would protect lenders from all liability, including civil liability. Without a formal grace period, secondary market purchasers are without legal protection once the rule takes effect, and can be expected to remain risk averse and conservative. Despite the lack of a formal grace period, the Bureau has not altered its position on providing an unofficial period of "taking...