WASHINGTON (5/29/15)--The topic of a grace period for the Consumer Financial Protection Bureau's (CFPB) Truth in Lending Act-Real Estate Settlement Procedures Act integrated disclosures (TRID) rule remains a hot topic.
Most recently, nearly 300 members of the U.S. Congress have aligned behind stakeholders' request for a safe harbor period.
CUNA strongly supports a “hold harmless” period after TRID is enacted. That period would allow credit unions and other financial institutions to figure out the day-to-day aspects of compliance with the rule without worrying about enforcement and liability. A bill introduced earlier this month would allow for the safe harbor until Jan. 1, 2016, and has CUNA’s support.
The rule is scheduled to take effect Aug. 1, but the 41 senators and 255 representatives who recently contacted the bureau are recommending a grace period through the end of 2015.
“Even with significant advance notice, understanding how to implement and comply with this regulation will only become clear when the industry gains experience using these new forms and processes in real-life situations,” reads the letter.
A number of mortgage industry stakeholders told members of the House Financial Services Committee this month that a safe harbor would be prudent.
In March, two key members of the House Financial Services Committee questioned why the rule is being implemented in the middle of what is traditionally the busiest time of year when it comes to homebuying.
Reps. Blaine Luetkemeyer (R-Mo.) and Randy Neugebauer (R-Texas) said some of the busiest days for existing-home closings occur in August, while January and February are traditionally the slowest months.