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64 I N D U S T R Y I N S I G H T / R I C H A R D H O R N The TRID Delay: What it means for the Industry Now and In the Future e Consumer Financial Protection Bureau (CFPB) gave the mortgage industry quite the surprise on June 24 of this year. With only 27 working days until the August 1 effective date of the TILA-RESPA Integrated Disclosure rule (or "TRID" for short), it proposed to delay the rule's effective date to October 3. e reason? e agency that holds the industry to the fire for compliance with its regulations missed one of its own compliance requirements for the TRID rule. e CFPB dubbed its mistake as an "administrative error." But this administrative error had serious consequences, both good and bad, for the industry. Some are TRIDiculously happy; others are stuck TRIDing water on their project plans. And the proposed delay has repercussions for not only TRID, but for the CFPB's future mortgage rulemakings as well. e TRID rule is a 1,888-page rule that integrates the disclosures under TILA and RESPA, and in the process completely overhauls the mortgage origination process. It integrates the current application and closing disclosures (the Good Faith Estimate, HUD-1 settlement statement, and the initial and final Truth in Lending statements) into two new disclosures: the Loan Estimate and Closing Disclosure. e rule also changes the definition of "application" that applies to the disclosure requirements, makes lenders responsible for the Closing Disclosure, and imposes new accuracy, timing, and provision requirements for these disclosures. e disclosures are also drastically different from the current disclosures. For example, the disclosures use a completely new payment schedule, the Loan Estimate itemizes closing costs, the new Closing Disclosures does not use the current HUD-1 line numbers, and there are new disclosures required by the Dodd-Frank Act. As some in the industry have said, this rule eats the CFPB's previous Title XIV rules for lunch. What was the CFPB's so-called "administrative error?" It missed a deadline under the Congressional Review Act (CRA) to submit a report on the TRID rule to Congress and the Government Accountability Office. Under the CRA, "major rules," defined in part as rules that have an annual effect on the economy of at least $100 million, cannot take effect until 60 days after this report is submitted. During this period, Congress has the chance to prevent the rule from taking effect by a joint resolution of the House and Senate. e CFPB failed to submit this report. It discovered its error and then submitted the report on June 16. is means the earliest possible effective date for the TRID rule is now August 15. As a result of the CFPB's administrative error, the CFPB had to delay the effective date of the TRID rule by at least two weeks to August 15. But the CFPB took this

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