Intense lobbying by the financial services industry and prodding by Congress has apparently swayed the head of the Consumer Financial Protection Bureau.
Integrated disclosures required under the Truth in Lending Act and the Real Estate Settlement Procedures Act were set to go live on Aug. 1.
But the CFPB faced intense pressure from the mortgage industry and lawmakers to either delay the implementation date or provide a grace period.
In addition to mortgage industry lobbying efforts, 254 House Republicans and Democrats sent a letter on May 20 to CFPB Director Richard Cordray asking that the implementation date be moved out to Jan. 1, 2016.
The lawmakers explained that the August date was in the peak of home buying season, while the January 2016 date was a period when home sales are seasonally slow.
On Wednesday, a notice from Cordray indicated that an amendment is being proposed to delay the effective implementation date until Oct. 1, 2015.
Cordray explained that an administrative error was discovered in meeting the requirements under federal law that would have delayed the effective date by two weeks.
“We further believe that the additional time included in the proposed effective date would better accommodate the interests of the many consumers and providers whose families will be busy with the transition to the new school year at that time,”
Cordray added.
The director noted that a final decision is expected shortly after the
public has an opportunity to comment on the proposal.
