In a previous blog post, we discussed the fact that the Consumer Financial Protection Bureau (CFPB), decided to implement a change of closing documents. These new forms are set to replace the HUD-1 and GFE in order to provide a more concise reorganization of the information buyer and seller receive at closing.
On July 21, the Consumer Financial Protection Bureau (CFPB) issued a ruling that will delay implementation of the new mortgage disclosure requirements and forms until October 3, 2015. The new requirements and use of new forms were originally scheduled to take effect on August 1. The final rule also makes two technical changes to the new regulations.
On June 17, CFPB Director Cordray announced that the agency will seek to delay implementation of the requirements until October 1. A proposed rule was then issued on June 24 citing an implementation date of October 3. The CFPB received over 800 comments to the proposed rule supporting the delay.
The TILA-RESPA Integrated Disclosure (TRID) rule, as known as the “Know Before You Owe” mortgage disclosure rule, will implement several new requirements on mortgage disclosure. It will also replace the Good Faith Estimate as well as the Truth in Lending forms with a “Loan Estimate” form, and the HUD-1 and Truth in Lending forms with a single “Closing Disclosure” form.
We will continue to keep you informed on this important news as developments occur.