The Consumer Financial Protection Bureau has issued its final rule for the "Know Before You Owe" mortgage disclosure rule, which is also known as TILA-RESPA or TRID.
The final rule moves the effective date to Oct. 3, as the bureau had suggested it would do in a proposed rule published on June 24. The CFPB had initially proposed a compliance date of August 1 but postponed the date back after industry and Congressional pushback.
The CFPB said in a July 21 release that it believes the revised effective date will "benefit both industry and consumers with a smoother transition to the new rule." The effective date has been placed on a Saturday to allow companies flexibility to implement changes to their systems without having to interrupt business.
Art Tyszka, the senior director and general manager for residential lending at compliance firm Wolters Kluwer Financial Services, said that, "The two-month extension provides needed breathing room for many lenders to help ensure they are compliant when the deadline arrives."