As Consumer Financial Protection Bureau Director Richard Cordray announced last week, the CFPB today issued its formal proposal delaying the effective date of the TILA-RESPA integrated disclosures. The bureau attributed its decision in part to an administrative error in which it failed to notify Congress 60 days prior to the rule taking effect as required by law but also acknowledged that “moving the effective date may benefit both industry and consumers with a smoother transition to the new rules,” as ABA had advocated.
Under the proposal, the new disclosures would come into effect on Saturday, Oct. 3, more than two months after the original effective date. The bureau set the effective date for a Saturday to give the industry time over a weekend to reconfigure and test systems. Comments on the proposed delay are due by July 7.