Cordray plans TILA/RESPA deadline push to Oct. 1

CFPB Director Richard Cordray said yesterday that the bureau will propose a delay until Oct. 1 of final implementation of the bureau’s Truth in Lending Act/Real Estate Settlement Procedures Act integrated mortgage disclosure rules.

“The CFPB will be issuing a proposed amendment to delay the effective date of the Know Before You Owe rule until October 1, 2015,” Cordray said in a statement. “We made this decision to correct an administrative error that we just discovered in meeting the requirements under federal law, which would have delayed the effective date of the rule 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.”

NAFCU President and CEO Dan Berger said such a move would be widely welcomed by credit unions, but more is needed. “This two-month delay would give credit unions much-needed time to complete their testing and update processes as they seek to comply with this complex rule,” Berger said. “However, NAFCU believes the bureau still must take credit unions’ good-faith efforts to comply into account – beyond the Oct. 1 deadline.”

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