WASHINGTON (6/18/15)--There will be a delay of the effective date of the Consumer Financial Protection Bureau's Know Before You Owe rule, which includes the Truth-in-Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA) Integrated Disclosures (TRID) regulation.
CFPB Director Richard Cordray proposed Wednesday that the rule will go into effect Oct. 1, rather than the fast-approaching original Aug. 1 date.
CUNA has strongly advocated for an enforcement delay of the TRID rule, pushing hard for a safe harbor period until the end of the year. Credit unions and other institutions that make good-faith efforts in compliance need a hold-harmless period to protect them from enforcement actions and litigation while they work to implement the complicated TRID requirements.
In the CFPB announcement on delaying implementation, Cordray said, "We made this decision to correct an administrative error that we just discovered in meeting the requirements under federal law, which would have delayed the effective date of the rule by two weeks."
CUNA said it is grateful for the delay, but still strongly recommends the longer safe harbor period to the end of the year. CUNA is analyzing the CFPB announcement to assess its full impact on credit unions.