A group of 17 trade associations and organizations have written to the CFPB seeking a grace period for enforcement of the TILA-RESPA Integrated Disclosure (TRID) rule which becomes effective on August 1, 2015.
In their letter, the groups seek written guidance from the CFPB on various situations not addressed by the TRID rule and ask the CFPB to announce and implement a “restrained enforcement and liability” or “grace period” for those seeking to comply in good faith following the provision of such guidance after August 1 through the end of 2015. The groups propose to use the grace period “to identify pain points with stakeholders” and thereafter meet with CFPB staff to address such issues and allow the CFPB time to provide additional written guidance.
The groups note that there is no opportunity for early compliance with the TRID rule, which means that industry will not be able to test systems, in real-time, in real circumstances, until after August 1. Accordingly, since industry would still be required to use the new forms and processes during the proposed grace period, the grace period would allow industry and the CFPB to see what actually works and what might need fine tuning or further clarification without costly disruptions to consumers during peak transaction months. The groups also observe in the letter that a restrained enforcement period is not without precedent, pointing to the approach taken by HUD when it revised the RESPA disclosures in 2010.
As the groups indicate, additional CFPB guidance regarding the TRID rule is needed. To date, the CFPB has provided guidance only orally, which many industry members consider to be lacking. The industry has found numerous issues that are not clearly addressed by the rule and will require CFPB guidance, which appears to have been a factor in the trade groups’ request to the CFPB.