CFPB Director Stops Short of Granting Enforcement Grace Period
Today CFPB Director Richard Cordray sent a letter to lawmakers outlining the agency’s position on TRID Enforcement after August 1st. He wrote this letter to Senator Donnelly and Senator Tim Scott and sent the same one along to the House as well.
The CFPB letter was written in response to a letter that members of the U.S. House and a letter that members of the U.S. Senate sent Cordray a couple weeks ago. Both the House and Senate letters ask for a grace or hold harmless enforcement period through the remainder of 2015 to help industry professionals adjust to the new Rule. Similar requests have been made by many industry groups.
Despite lawmakers and industry professionals specifically asking for a hold-harmless period, Cordray’s letter never mentions granting the grace period requested. Instead, the letter states “our oversight of the implementation of the Rule will be sensitive to the progress made by those entities that have squarely focused on making good-faith efforts to come into compliance with the Rule on time.” Cordray went on to say he does not believe there will be any delays in closings due to TRID implementation. These statements were also included in a blog post on the CFPB website.