Republicans and Democrats in the House of Representatives are asking the Consumer Financial Protection Bureau for a regulatory grace period on integrated disclosures.
The CFPB’s Integrated Disclosure rule mandates that a new set of loan disclosures required under the Truth in Lending Act and the Real Estate Procedures Act be implemented.
The problem is that the new forms go into effect on Aug. 1 — smack dab in the middle of the peak home buying season.
So in a May 20 letter to the CFPB signed by 254 representatives on both sides of the isle, the lawmakers are asking for a grace period to help lenders and home buyers comply with the new regulation.
Leading the call for a delay are Rep. Andy Barr (R-Kentucky) and Rep. Carolyn B. Maloney (D-New York), according to a news release Wednesday.
“Even with significant advance notice, understanding how to implement and comply with this regulation will only become clear when the industry gains experience using these new forms and processes in real-life situations,” the letter stated. “As the TRID regulation does not provide lenders an opportunity to start using the new disclosure form prior to the August 1st implementation date, market participants will not be able to test their systems and procedures ahead of time, which increases the risk of unanticipated disruptions on August 1st.”
The representatives prefer that the implementation date be moved out to Jan. 1, 2016, during a period when home sales are seasonally slow.
