CFPB Delays TRID Date: Read the Compliance Guide for October
What’s New with TILA-RESPA? Here’s an Overview of the Updates
Are you ready to start using the new TRID? Now that you’ve rushed so frantically to keep up the the latest change with TILA-RESPA, the deadline has been delayed by the CFPB.
It may come as good news to some that the deadline for making the switch with the new TRID updates was recently pushed back to October 3rd, 2015. This is both good and bad for the real estate and mortgage industries in that home buyers will now be given an accurate estimate and more time (3 days) with Know Before You Owe to assure compliance with regulations and a smoother closing process.
Check this compliance guide for TILA-RESPA Integrated Disclosure rule to find out if you’re ready.
What does the new TRID rule entail? It’s a new way to process what was once the initial TILA disclosure and Good Faith Estimate along with the final TIL disclosure and HUD-1 statement. When put into effect, the TRID or TILA-RESPA Integrated Disclosure rule consolidates these forms into two forms to simplify the process. Not to mention, it slows the time of the wait period to 3 days in order to give the consumer more time with the initial loan estimate.
The only problem is that such a drastic change in process is difficult for some companies to handle, hence the reason for the delay. It’s important to work with a good title agency through the end of 2015 to avoid any setbacks when buying a home.
What’s the bad news about the delay? Some lenders are concerned that the one month extension is not near enough time to help lessen the blow to their previous processes and systems. Without ample time to implement and test the new forms, the October 3rd deadline may pose as a setback for the industry. That is, if lenders lag behind in updating their procedures, businesses fail to operate as usual. The greatest adversary for mortgage lenders and TRID in 2015 is the possibility of non compliance and delays in business.
What’s the good news about the delay? If you’re prepared to make the switch, then there’s no need to wait for the new deadline. The CFPB will allow the use of the consolidated TRID forms and new procedure by the original deadline on August 1st. This means you will have an entire month to test your new processes, train employees on the new systems, and get things figured out before the actual deadline rolls around. This gives the industry plenty of time to collect feedback and work out any kinks in the system that slow regular business.
Not prepared to make the change in TRID? You aren’t alone. In fact, there’s a collective anxiety about what business operations on October 3rd will look like for the real estate and mortgage industries. That’s why the CFPB also put in place a Good Faith Grace Period through the end of 2015.
In need of quick and easy closing services through 2015?
Work with a title agency that’s up to date with the latest TRID changes. Contact Bay National Title Company for a consultation and title insurance estimate today.
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