A Good Faith Grace Period Would Let Industry Adjust to New Closing Process
WASHINGTON, D.C. – May 13, 2015 – (RealEstateRama) — RE/MAX Executives delivered a personal letter from RE/MAX CEO and Co-Founder Dave Liniger to CFPB Director Richard Cordray requesting a “good faith grace period” for the introduction of new TILA-RESPA Integrated Disclosure (TRID) regulations.
In the open letter to Cordray, Linger requests that there be no enforcement from August 1 to December 31 to provide the industry with time to adjust new timelines and forms in the mortgage closing process.
After his speech Tuesday to the National Association of Realtors Mid-Year conference in Washington D.C. Cordray received Liniger’s letter that stated homebuyers might be confused by the new regulations at a time when the home buying season is in full swing.
The Consumer Financial Protection Bureau (CFPB) has set August 1 as the date for introducing new TILA-RESPA regulations that will impact every mortgage closing from that date forward.
Read the Liniger letter below or click the red button at the bottom of the page to download a copy of the actual letter.
May 8, 2015
Consumer Financial Protection Bureau
1700 G Street NW
Washington, D.C. 20552
Executives from our organization have met with CFPB staff on a couple occasions to discuss the impact of implementing the TILA-RESPA Integrated Disclosure (TRID) regulation. We are grateful for their openness and cooperation to help us understand the many aspects of this new regulation that are set to go into effect on August 1.
Representing over 57,000 U.S. real estate agents and the hundreds of thousands of consumers they work with each year, we are respectfully requesting that the CFPB consider a “good faith grace period” from August 1 to December 31, a sufficient time for the industry to learn the new system without the fear of enforcement, liability of litigation.
Since the TRID regulation involves a totally new process that has never been tested before, we believe it would be more than appropriate to provide the industry with a grace period, which is entirely consistent with the introduction of previous RESPA disclosures. At the height of the home-buying season, it’s critical that we do everything possible to reduce the disruption that will surely result from such sweeping change.
TRID is a complex regulation that involves timelines, disclosures, procedures and forms that have never been used before. Undoubtedly, the transition will also cause significant confusion for the home-buying consumer, the very individuals TRID has been designed to assist.
We are pleased to be aligned with over 15 industry associations and two congressional representatives who have also requested such a grace period, and hope the CFPB will respond favorably to our recommendation. It’s our strong belief that a “good faith grace period” will benefit everyone involved.
We appreciate your thoughtful consideration of our request and would certainly look forward to an opportunity to meet with you or your staff to discuss the issue further.
Chief Executive Officer