The Consumer Financial Protection Bureau (CFPB) has officially set the effective date for implementation of its TILA-RESPA Integrated Disclosure (TRID) rules, also known as the ‘Know Before You Owe’ mortgage disclosure rules, for Saturday, Oct. 3.
Initially, the new rules were to take effect on Aug. 1, but an administrative error required the CFPB to postpone the effective date by at least two weeks. This, combined with outcry from lenders and industry trade groups that wanted to see the date pushed off until the end of this year, led the CFPB to propose a deadline date of Oct. 1. However, that was quickly changed to Oct. 3, mainly so that the new rules could take effect on a weekend, thus minimizing the potential for disruption when new software systems are switched on.
Bureau officials say setting the deadline for a Saturday ‘may facilitate implementation by giving industry time over the weekend to launch new systems configurations and to test systems.’ What's more, it is ‘consistent with existing industry plans tied to the original effective date of Saturday, Aug. 1.’
Rumors have been swirling for weeks that many lenders and software providers simply would not be ready by the original Aug. 1 deadline. This also may have prompted the CFPB to delay implementation.
The bureau's final rule also includes technical corrections to two provisions of the TRID rules.
Even with the date now set for Oct. 3, lenders remain concerned as to whether the rollout of the new rules will go smoothly.