SACRAMENTO, Calif., Aug. 20, 2015 /PRNewswire-USNewswire/ -- The Escrow Institute of California (EIC) has been working diligently to provide training on the new TILA RESPA Integrated Disclosure rule since 2014. EIC members have regularly attended training events throughout the year, and EIC is confident its members will be ready for the new TRID implementation date of Oct. 3, 2015.
EIC president Nancy Silberberg, speaking on behalf of the nearly 6,700 licensed settlement agents in California, expressed the Institute's concerns with the implementation and timing of the new rules.
"While the majority of our members are familiar with the new regulations and are taking the necessary steps to prepare and work with the new forms, what is not known is how each lender will deal with the implementation," she said. "We want to make sure that we all have enough time to work through the possible bumps in the road during this new closing process. Our chief concern is to make sure the consumers are well served during this time. The Escrow Institute urges the CFPB to refrain from penalizing those who are working together towards understanding the changes associated with the TRID."
During the public comment period on the revised rule extending the effective date of TRID from Aug. 1, 2015 to Oct. 3, 2015, EIC supported and applauded the delay in implementation.
"We believe this should give all of the service providers covered under the TRID additional time to develop the necessary compliance programs and procedures, conduct program training and initial systems testing before the new implementation date," said Silberberg. "Extending the date to October should also be less disruptive for consumers during this annual peak period for the housing marketplace."
EIC also supports the many industry trade associations and members of Congress that have encouraged the Bureau to announce a specific delayed enforcement hold-harmless period against companies who are attempting to meet the TRID requirements in good faith.
"The Bureau's recent informal announcement that it will be 'sensitive' when reviewing potential enforcement action is a step in the right direction," said Silberberg. "However, the entire industry requires and needs a brief 'shake out' adjustment period to address the implementation issues that we all know will arise. The last thing we want or need is to hear of transactions not opening or closing due to any uncertainty in the marketplace. Therefore, the months following implementation will likely be a time of learning what actually works and where further guidance will be required for full compliance."
"Guidance is the key," she continued. "We encourage the Bureau to provide guidance, like the FAQ (frequently asked questions) issued by HUD in 2010. This was extremely helpful during the transition process."
About the Escrow Institute of California
The Escrow Institute of California (EIC) is the professional trade association that represents California Department of Business Oversight licensed escrow/settlement agents. For more information, please visit www.escrowinstitute.org.
SOURCE Escrow Institute of California