WASHINGTON — After months of declining industry and congressional pleas to delay an impending rule combining two mortgage disclosure regimes, the Consumer Financial Protection Bureau on Wednesday announced a two-month delay due to an "administrative error."
The CFPB released a statement from Director Richard Cordray saying the agency would issue a "proposed amendment" delaying the effective date to Oct. 1.
The rule, which would create an "integrated disclosure" combining requirements of the Truth in Lending Act and the Real Estate Settlement Procedures Act, is commonly known as TRID.
Although trade groups - including NAFCU, CUNA and nearly 300 members of Congress -had pushed for the CFPB to delay the rule or offer a grace period for companies that simply make an effort to be in compliance, the CFPB said it decided to push the date back because of other reasons.
"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," Cordray said in the press release. "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 proposal will be issued for public comment and "a final decision is expected shortly thereafter," the CFPB said.
NAFCU President Dan Berger the CFPB's move is "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 in a statement Wednesday evening. "However, NAFCU believes the bureau and the National Credit Union Administration still must take credit unions' good-faith efforts to comply into account -- beyond the Oct. 1 deadline."
--Marian Raab contributed to this article