In a bid to secure some breathing room for the real estate industry from new regulation, Dave Liniger, CEO of real estate franchisor Re/Max, recently sent an open letter to the Consumer Financial Protection Bureau requesting that the agency delay enforcement of the TILA-RESPA Integrated Disclosures (TRID) rules.
TRID, which is set to kick in on August 1, consolidates four existing disclosures required under the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA) into two forms, and imposes requirements that are expected to impact the timeline of closings and allow for little or no last-minute changes to a transaction.
“TRID is a complex regulation that involves timelines, disclosures, procedures and forms that have never been used before,” Liniger wrote. “Undoubtedly, the transition will also cause significant confusion for the home-buying consumer, the very individuals TRID has been designed to assist.”
Liniger asked the CFPB to grant a “good faith grace period” from August 1 to December 31, “a sufficient time for the industry to learn the new system without fear of enforcement, liability or litigation.”
Richard Cordray, the director of the CFPB, spoke at the National Association of Realtors’ 2015 Realtors Legislative Meetings & Trade Expo yesterday. He has stated that the CFPB has no plans to delay TRID rule implementation.
Read the full letter below: