WASHINGTON (6/25/15)--The Consumer Finance Protection Bureau (CFPB) announced Wednesday it is proposing to delay the effective date of the Know Before You Owe integrated mortgage disclosure rule until Oct. 3, a Saturday, instead of Oct. 1.
The bureau originally had proposed an Aug. 1 effective date of the Truth in Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA) integrated disclosures (TRID) rule.
Credit unions have until July 7 to comment.
CUNA, while welcoming the delay, indicated it would continue to strongly advocate for a safe harbor period through Dec. 31 to protect credit unions and other financial institutions from liability under enforcement of the new rule as they acclimate to the new TRID requirements.
The rule requires updated forms that lay out the terms of a mortgage for the borrower.
In announcing the changed date, CFPB said an administrative error would have delayed the original Aug. 1 effective date to Aug. 15 at the earliest. Then the bureau said it would extend the date to October.
CFPB said it moved the date to provide the industry and consumers a smoother transition to the new rules and moved it to a Saturday to give industry time during the weekend to launch new system configurations and test their systems. It said a Saturday date is consistent with the existing industry plans tied to the original Aug. 1 date, which also is a Saturday.
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