Author: Jay Bruce
As you’ve heard, the CFPB wants to delay the new TRID rules until October 1 – but you may not have heard the reasons why. No, it’s not because the rules are so complicated that everyone, including the CFPB, doesn’t fully understand them, nor is it because the industry has pleaded for a delay of six months to get fully prepared.
Here are the reasons directly from Richard Cordray, Director of the CFPB:
- Reason 1: “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.”
Ok, but why a two-month rather than just a two-week delay you ask? Good question. See below:.
- Reason 2: “We further believe that the additional time included in the proposed effective date would better accommodate the interests of the many consumers and providers whose families will be busy with the transition to the new school year at that time.”
So I tip my hat to the CFPB. No other federal regulator has ever delayed mandatory compliance with a banking regulation for family-friendly reasons. Not surprisingly however, most students say they would rather have school delayed until October to better accommodate the interests of the CFPB and the many federal bank regulators.