In the News Presented by Prairie Title
Commentary by Frank Pellegrini, Prairie Title CEO
April 16, 2015 – You’ve probably heard rumors here and there, some stronger than others, that the Consumer Financial Protection Bureau might delay the implementation of the new TILA-RESPA integrated mortgage disclosure process beyond August 1. My advice: Don’t believe them.
There was a mild kerfuffle on March 26 when Steve Antonokes, CFPB deputy director said, “To the extent there is new information or we’re hearing directly from vendors that folks aren’t going to be ready ... we should continue to talk about that. I can’t promise you [changes], but to the extent we will have a better understanding of the concerns, that is something we will consider.”
A bureau spokesperson later clarified the statement, saying: “We have no plans to delay the deadline on the new mortgage disclosure forms. The industry should be prepared to begin using the new forms for loans with an initial application submitted on or after August 1.”
Later, two Republican house chairs sent a letter to the CPFB asking that implementation be delayed until January 1, 2016. That too is very unlikely to happen. The pair asked CFPB Director Richard Cordray to respond by April 17 (tomorrow, if you’re reading this the day of publication). If CFPB responds by delaying implementation we’ll have a new edition of In the News out within hours, and I just might eat my hat.
Put all thoughts of delay aside and continue to prepare. Attorneys and lenders should be well on their way to implementing their processes around the new form and accompanying three-day rule.
The new TILA-RESPA process was adopted in the wake of the biggest financial meltdown that any of us has experienced in our lifetimes. The CFPB’s mandate is to create rules that will revolutionize the way lending is done and consumer information disseminated. The changes going into effect on August 1 are intended to help consumers become better informed about how the process works and what the costs are. The new form, generally, is a better form for the consumer. Though implementation will be challenging for the industry, we’ll get used to the new process and, ultimately, it will be a net positive for consumers and real estate professionals alike.
Let’s keep the conversation going. Call or email me: 708-386-7900; firstname.lastname@example.org.
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