On June 24, the Consumer Financial Protection Bureau (CFPB) issued a proposed amendment to the “Know Before You Owe” mortgage disclosure rule, which proposes to move the rule’s effective date to October 3. The rule, also called the TILA-RESPA Integrated Disclosure rule, requires easier-to-use mortgage disclosure forms. The CFPB, according to reports published recently, delayed the rule to correct an error in giving notice to Congress under the Congressional Review Act at least 60 days before the planned effective date of the regulation. The CFPB stated that it was issuing the proposal “to correct an administrative error that would have delayed the effective date of the rule by at least two weeks, until August 15 at the earliest.”
The CFPB is proposing a new effective date of Saturday, October 3. The CFPB stated that it “believes that moving the effective date may benefit both industry and consumers with a smoother transition to the new rules.”
The CFPB had earlier been requested by members of Congress to delay implementation until January 1, 2016, and by several trade groups to provide a “hold harmless” period. Neither request was granted, the CFPB having instead stating that it “would be sensitive to the progress made by those entities that have been squarely focused on making food-faith efforts to come into compliance with the rule on time” and that it had “made it a point to engage directly and intensively with financial institutions and vendors through a formal regulatory implementation project.”
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