We are happy to report that the Director of the Consumer Financial Protection Bureau (CFPB) announced the Bureau will be implementing a good-faith enforcement grace period when the new Truth in Lending Act and Real Estate Settlement Procedures Act (TRID) regulation goes into effect on August 1. This does not delay implementation. A good-faith ‘open-ended’ grace period does delay enforcement.
The CFPB announced that it would be “sensitive” to companies that make a good-faith effort to comply with the new TRID regulation. This is a welcome development.
The announcement by CFPB is a net win but less than what some Members of Congress requested, which was a hard deadline five-month testing or “grace” period. NAR has been leading the effort to ensure an effective implementation of the TRID regulation. They will continue to have a dialog with Congress and the CFPB as we move toward August 1. It was through RAPV members efforts, and those of thousands of Realtors® from across the country during the Realtor® Legislative Mtgs & Trade Expo a few weeks ago in D.C. that more than 275 U.S. Senators and Representatives signed onto a letter to CFPB Director Richard Cordray to ask for the clarification that was issued yesterday..
Read this helpful article.
For more information on this topic visit NAR’s RESPA page.