Yesterday the Consumer Financial Protection Bureau (CFPB) delayed the effective date of the TILA-RESPA Integrated Disclosure (TRID) rule until October 1st. The rule also known as “Know Before You Owe” rule was supposed to go into effect on August 1st.
“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,” said CFPB Director Richard Cordray.
The rule requires two new forms: the Loan Estimate and the Closing Disclosure. These two forms consolidate the TILA-RESPA forms (now referred to as TRID) are meant to give the consumers more time (3 days) to review the total cost of their mortgage.