The Consumer Financial Protection Bureau announced on Wednesday a proposal to delay the effective date of the TILA-RESPA Integrated Disclosure rule until Oct. 1. The rules were originally set to go into effect on Aug 1.
These new forms consolidate the TILA-RESPA and HUD-1 forms and are meant to give consumers more time to review the total costs of their mortgage. Of particular concern to the mortgage industry is the new rule’s requirement that the Closing Disclosure (new HUD-1) is due to borrowers three days before closing. These rules have thrown the mortgage industry into a frenzy as they try to comply by the deadline, and threatened to delay closings during the busy fall real estate market.
CFPB Director Richard Cordray said that “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.”
This is good news for the mortgage lenders and real estate conveyancers as we continue to work on achieving full compliance with the new forms and rules.