Lenders said the delay in implementing the combined loan and closing disclosures is giving them valuable added time to train their staff, according to a DocuTech survey.
The Consumer Financial Protection Bureau approved a delay to its enforcement of a rule governing the merger of the Truth in Lending Act and Real Estate Settlement Procedures Act into a single set of disclosures to mortgage borrowers, known as TRID. The implementation date shifted to Oct. 3 from Aug. 1.
The two-month delay will help lenders test their technology to confirm that it meets compliance standards, as well give more time for employee training, according to the survey conducted by
"Our customers have told us the delay will allow them more time to test and correct system issues and ensure all documents are printing correctly," Scott Stucky, chief strategy officer at DocuTech, said in a news release.
The delay also helps because implementing the TRID rules during late summer and early fall would have been difficult, he said. The implementation requires coordinating providers of documents, loan origination software and settlement services. Lenders would have been required to go live this week with systems that complied with TRID.
"A common theme we keep hearing is that rolling out the new forms during the industry's busiest season would have delayed consumer financing and created hardships for their borrowers," Stucky said.
