CFPB Declines Congressional Appeals for TILA-RESPA Grace Period

In an April 22 letter released today, 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.

Share.

About Author

Evan Sparks

Evan Sparks is editor-in-chief of the ABA Banking Journal and vice president for publications at the American Bankers Association.