Real Estate Disclosure Changes Delayed

Significant changes are coming to the mortgage industry which will impact homebuyers as well as lenders. The "Know Before You Owe Rule", or "TILA RESPA Integrated DIsclosure Rule", or "TRID", was originally planned for August 1, 2015, however, the Consumer Financial Protection Bureau (CFPB) has announced their intent to delay the effective date, likely to October 1, 2015.

Changes mandated by TRID are intended to give home buyers more time to review the details of their mortgage and make the process easier to understand. It includes consolidation and changes to several real estate disclosure forms which will give the buyer a clearer understanding of the fees being charged.

This new rule significantly impacts the mortgage industry, requiring major changes to process, procedures and systems. All this coming at the original date of Aug 1, traditionally one of the busiest homebuying seasons. Many think the delay may be due to readiness, or lack thereof, of the various service providers to accommodate the new changes, potentially leading to costly errors as lenders and loan originators struggle to implement the new changes.

While the CFPB has proposed amending the effective date to October 1, until a period of public comment has passed, that is not yet finalized. More to come.