The Consumer Financial Protection Bureau (CFPB)has issued a proposed amendment to the Know Before You Owe mortgage disclosure rule, which proposes to move the rule’s effective date from August 1st to October 3, 2015. The rule, also called the TILA-RESPA Integrated Disclosure rule, requires easier-to-use mortgage disclosure forms that clearly lay out the terms of a mortgage for a homebuyer. The Bureau is 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 Bureau believes that moving the effective date may benefit both industry and consumers with a smoother transition to the new rules. The Bureau further believes that scheduling the effective date on a Saturday may facilitate implementation by giving industry time over the weekend to launch new systems configurations and to test systems. A Saturday launch is also consistent with existing industry plans tied to the original effective date of Saturday, August 1.
The FDIC has revised its interagency examination procedures to reflect the requirements of the TILA/RESPA integrated disclosures (TRID) rule. The revised procedures also reflect the following amendments to other provisions of TILA Regulation Z and RESPA Regulation X:
- The alternative definition of the term “small servicer” for certain nonprofit entities in the mortgage servicing rules
- The provisions in the ability-to-repay/qualified mortgage rule that give creditors or assignees meeting certain requirements a limited period of time in which to review a transaction and “cure” excess points and fees for purposes of maintaining QM status
- Additional exempt transactions under the appraisal rule for higher-priced mortgage loans
The proposal is open for public comment until July 7.