CONSUMER FINANCIAL PROTECTION BUREAU FINALIZES TWO-MONTH EXTENSION OF KNOW BEFORE YOU OWE EFFECTIVE DATE
Washington, D.C. – The Consumer Financial Protection Bureau (CFPB) today issued a final rule moving the effective date of the Know Before You Owe mortgage disclosure rule, also called the TILA-RESPA Integrated Disclosures rule, to October 3, 2015. The rule requires easier-to-use mortgage disclosure forms that clearly lay out the terms of a mortgage for a homebuyer. The Bureau issued the change 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 is finalizing Saturday, October 3 as the effective date. The Bureau believes that moving the effective date may benefit both industry and consumers with a smoother transition to the new rule. 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 industry plans tied to the original effective date of Saturday, August 1.
The final rule issued today also includes technical corrections to two provisions of the Know Before You Owe mortgage disclosure rule.
A copy of the final rule is available on the CFPB website.
New Available Online Course: Integrated Mortgage Disclosures ~ The New TILA-RESPA Forms ~ is available now!
The TRID Rules have the potential to impact real estate transactions in a number of ways. This course is designed to present the new disclosures that go into effect in 2015 and how the new disclosures are completed. We will also examine the required timeframes for disclosure. VanEd is offering a 2 hour course covering the new forms.
Written and Published by: VanEd