Posted by: RAPV | June 4, 2015

GRACE PERIOD FOR TRUTH IN LENDING ACT AND RESPA (TRID) REGULATION

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.

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