Group of professionals discuss finance

Breaking news and expert analysis on legal and compliance issues

[Back To Home][Back To Archives]

From Banking and Finance Law Daily, June 3, 2015

CFPB allays concerns over TRID compliance

By John M. Pachkowski, J.D.

With the Aug. 1, 2015, date for complying with the regulations implementing the TILA-RESPA Integrated Disclosure (TRID) requirements occurring in less than two months, the Consumer Financial Protection Bureau has sent a letter to Sens. Joe Donnelly (D-Ind) and Tim Scott (R-SC) stating that the bureau’s oversight of the TRID implementation “will be sensitive to the progress made by those entities that have been squarely focused on making good-faith efforts to come into compliance with the rule on time.”

The TRID rule combines certain disclosures that consumers receive in connection with applying for and closing on a mortgage loan under the Truth in Lending Act and the Real Estate Settlement Procedures Act (see Banking and Finance Law Daily, Nov. 20, 2013).

Hold harmless. Industry stakeholders have called upon the CFPB to establish a “hold harmless period of enforcement and liability” for institutions that, acting in good faith, are unable to comply with TRID (see Banking and Finance Law Daily, May 14, 2015).

Grace period. Besides a letter sent to the CFPB by Donnelly and Scott, many other members of Congress have also called for a grace period until the end of 2015 for financial institutions that are making a good faith effort to comply with TRID. More than 250 members of the House, led by Reps. Andy Barr (R-Ky), Carolyn Maloney (D-NY), and Maxine Waters (D-Calif), sent a similar letter to the CPFB director. In their letter, the representatives noted also that January and February are consistently the slowest months of the year for home sales, making them more ideal for implementation (see Banking and Finance Law Daily, May 26, 2015).

Consumer expectations. The CFPB letter to Donnelly and Scott was mentioned in a bureau blog posting apprising consumers what to expect under TRID. The blog posting also provided a factsheet explaining the changes.

Industry reaction. Following the CFPB’s announcement, Frank Keating, president and CEO of the American Bankers Association, issued a statement “appreciate[ing] the CFPB’s statement that it will be sensitive to industry compliance efforts with regard to TRID implementation.” The ABA added, “However, we are disappointed that the statement falls well short of a ‘hold harmless’ period, which ABA and nearly 300 members of Congress asked for. While the bureau acknowledged the implementation challenges of this rule, CFPB’s decision will only provide limited assurances to bankers in their efforts to comply.”

Independent Community Bankers of America® President and CEO Camden R. Fine echoed those sentiments. In his statement, Fine said, “While ICBA appreciates the CFPB’s announcement that it will be sensitive to progress made by institutions that have focused on making a good-faith effort to comply with the bureau’s TILA-RESPA Integrated Disclosure rule, ICBA prefers a more defined enforcement and liability grace period through 2015 for those complying in good faith with this complex regulation. Community banks will continue to face challenges in complying with the regulation, especially those banks that have not yet received the necessary software updates to their loan processing and closing systems from service providers. These banks will face the prospect of completing installation, testing and employee training in a too-short period of time.”

Companies: American Bankers Association; Independent Community Bankers of America

MainStory: TopStory CFPB Loans Mortgages RESPA TruthInLending

Banking and Finance Law Daily

Introducing Wolters Kluwer Banking and Finance Law Daily — a daily reporting service created by attorneys, for attorneys — providing same-day coverage of breaking news, court decisions, legislation, and regulatory activity.


A complete daily report of the news that affects your world

  • View full summaries of federal and state court decisions.
  • Access full text of legislative and regulatory developments.
  • Customize your daily email by topic and/or jurisdiction.
  • Search archives for stories of interest.

Not just news — the right news

  • Get expert analysis written by subject matter specialists—created by attorneys for attorneys.
  • Track law firms and organizations in the headlines with our new “Who’s in the News” feature.
  • Promote your firm with our new reprint policy.

24/7 access for a 24/7 world

  • Forward information with special copyright permissions, encouraging collaboration between counsel and colleagues.
  • Save time with mobile apps for your BlackBerry, iPhone, iPad, Android, or Kindle.
  • Access all links from any mobile device without being prompted for user name and password.