Consumer Financial Protection Bureau to delay start date of new mortgage rule until Oct. 1
Source: Ohio Association of REALTORS: OAR Daily Buzz
By Bob Fletcher, OAR Chief Executive Officer
The Consumer Financial Protection Bureau will delay the effective date of the Know Before You Owe mortgage disclosure rule until Oct. 1, 2015.
In a statement, Director Richard Cordray said:
“The CFPB will be issuing a proposed amendment to delay the effective date of the Know Before You Owe rule until October 1, 2015. 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. 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.”
The public will have an opportunity to comment on this proposal and a final decision is expected shortly thereafter.
This news follows an announcement earlier this month that the CFPB would not delay the original Aug. 1 implementation date, but would institute a good-faith grace period.
The Know Before You Owe mortgage rule is designed to produce an easier-to-use closing document that is provided to consumers three days prior to closing, with information on mortgage terms and costs. The rule is intended to give consumers time to obtain legal advice in instances where there is a significant change in lending terms prior to closing.