CFPB Declines Congressional Appeals for TILA-RESPA Grace Period
In an April 22 letter released yesterday, Consumer Financial Protection Bureau Director Richard Cordray declined congressional appeals to provide a grace period for enforcement of the TILA-RESPA integrated disclosures that come into force on Aug. 1.
“[E]valuating the scope of potential implementation challenges and appropriate responses prior to the effective date is unnecessarily speculative,” Cordray told Rep. Blaine Luetkemeyer (R-Mo.), one of the lawmakers who has advocated for a grace period. Instead, Cordray said the bureau would “answer questions, provide guidance and evaluate any issues industry and consumers experience as the [rule] is implemented.”
ABA has called for the bureau to provide a grace period that would facilitate compliance, especially since there is no opportunity to comply ahead of Aug. 1. Reps. Steve Pearce (R-N.M.) and Brad Sherman (D-Calif.) last week introduced an ABA-backed bill creating a safe harbor through the end of the year from enforcement and civil actions if lenders make good faith efforts to implement the new disclosure regime.
Read Cordray's letter.