TRID Changes Postponed


Filed under: Market Comentary


House Lock KeyMany of you are probably already familiar with the fact the changes are on the horizon with respect to real estate and lending disclosures. TRID (TILA, RESPA Integrated Disclosure) was initially targeted to go into effect on August 1, 2015 but has now been postponed until October 1st of this year.

The changes are intended to simplify the loan document procedure and provide disclosure statements that are easier for the borrower to understand. TRID also changes some of the customary timelines associated with information being provided to the borrower from the lender.

The delay in implementation is intended not only to allow lenders additional time to put compliant practices in place, but also to prevent the change from occurring during summer’s peak buying/selling season.

The CFPB (Consumer Financial Protection Bureau) cited the following reason for the delay in implementation:

“The CFPB will be issuing a proposed amendment to delay the effective date of the Know Before You Owe rule until October 1, 2015. 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 to the new school year at that time.”

The implications of TRID will affect every real estate transaction and all professionals – agents, lenders, title, and escrow – must do their part to become fully informed and understand the changes. This latest news means that an extra 60 days will now afford everyone more time to get fully up to speed.

I understand that there may be confusion surrounding this issue so feel free to contact me if you have questions or would like to discuss it.


Franklin Loan Center | NMLS 237653
Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act, 4131316
http://www.nmlsconsumeraccess.org/entitydetails.aspx/COMPANY/237653
For questions or concerns please email info@franklinlc.com