The director of the CFPB issued the following statement:
This decision is interesting as it comes on the heals of a letter from Congress several weeks ago, asking the CFPB for a grace period (which was granted). The grace period benefits all parties involved, including the consumer. David Stevens, chairman and CEO of the Mortgage Bankers Association, stated: “This is a vast system of integrated service providers that spreads far beyond just lenders – there are servicing companies, real estate companies and third-party vendors who all have to make sure their systems are compliant and coordinated with each other.” Further more, Chris Polychron, National Association of Realtors President, stated this will: "ensure the rule works effectively for consumers, who shouldn’t have to bear the burdens of the industry conforming to the new regulatory requirements.”“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,” said Richard Cordray, CFPB director. “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.”
While Cornerstone Mortgage has worked diligently on preparing for all of the changes happening in the mortgage industry, the end goal is for a smooth transition for ALL PARTIES involved in the process. The hope is that this delay will benefit all involved, most importantly, the consumer.
Please don't hesitate to contact me with any questions.
Have a great weekend,
Chris
