With TRID delayed until October now, do you think that the CFPB will again consider an informal “grace period?”

TRID being delayed until October was due to what the bureau described as delays in software updates for lenders. As I think more about what the bureau’s trying to do, I think its goal is to allow more time for the industry to test the software. I think their announcement about a “good faith” period is separate from this delay in the effective date, although that doesn’t prevent them from taking up the issue in a final rule delaying the effective date and hopefully providing more guidance about what the good faith period means.

Some of the areas where they could provide more guidance are the length of the good faith period—they didn’t really define how long that would last—and they didn’t define what “good faith” meant. So those are two areas where they could provide more guidance.

I think they would have provided a good faith grace period even if they didn’t put out the announcement, because that’s what they did for the Title 14 rules. When QM and HOEPA and all the other Title 14 rules came into effect, they put out a very similar statement saying they were going to provide a period where they were sensitive to good faith efforts to comply. But hopefully they’ll address some of the questions about it in the final rule delaying the effective date.

Answered By: Richard Horn