By John M. Pachkowski, J.D.
The Government Accountability Office (GAO) has released its assessment of Consumer Financial Protection Bureau’s compliance with the procedural steps required by Congressional Review Act (CRA) regarding the CFPB’s 2013 final rule that integrated various mortgage disclosures required by the Real Estate Settlement Procedures Act and the Truth in Lending Act.
Although the final rule, commonly referred to as the TRID rule, was formally published at the end of 2013 and was to become effective on Aug. 1, 2015, many industry stakeholders and members of Congress pressed the bureau to delay the effective date or provide a safe harbor for compliance.
Bowing to pressure, the CFPB initially announced that in a letter to Sens. Joe Donnelly (D-Ind) and Tim Scott (R-SC) stating that the bureau’s oversight of the TRID implementation “will be sensitive to the progress made by those entities that have been squarely focused on making good-faith efforts to come into compliance with the rule on time.”
Following its “sensitive to the progress made” position, the CFPB issued a proposed amendment that would delay the effective date of the TRID rule until Oct. 3, 2015. The bureau noted that it was taking this action due to an administrative error on its part in complying with the CRA.
In its assessment, which was sent to the leadership of the Senate Banking and House Financial Services Committees, the GAO noted that since the CFPB’s CRA review was not received until June 16, 2015, the required 60-day delay in the effective date of a major rule was not met. Despite that failure, the GAO found the other procedural steps required by the CRA were met.
Specifically, the GAO’s assessment found the CFPB adequately discussed costs and benefits of the TRID rule. In addition, the bureau took other actions that satisfied: the requirements of the Regulatory Flexibility Act; the notice and comment requirements of the Administrative Procedures Act; and the cost estimates for information collection requirements under Paperwork Reduction Act.
For more information about TILA and RESPA, subscribe to the Banking and Finance Law Daily.
