MBA pushing for safe harbor for TRID

Industry wants a formal grace period

The mortgage industry is pushing for the Consumer Financial Protection Bureau to adopt a formalized grace period for the enforcement of the complex TILA-RESPA Integrated Disclosure requirements, and now Mortgage Bankers Association is pushing Congress to take action.

The CFPB intends to grant an undefined grace period for TRID enforcement, but MBA wants to make it official

Here’s what the MBA has to say as Congress returns to Capitol Hill on Tuesday:

Yesterday the Mortgage Action Alliance issued a Call to Action, urging its members to contact their members of Congress in support of legislation that would provide a temporary enforcement grace period and legal safe harbor to ensure smooth implementation of the new TILA-RESPA Integrated Disclosures rules for lenders that make a good-faith effort to comply.  

In the House, H.R. 3192, the Homebuyers Assistance Act (, introduced by Rep. French Hill, R-Ark., would provide a legal safe harbor for lenders through February 1, 2016. The bill was approved by the House Financial Services Committee in late July.  

In the Senate, S. 1711 (, introduced by Sen. Tim Scott, R-S.C., would provide a similar legal safe harbor through January 1, 2016. The bill was included in the regulatory relief package that was reported from the Senate Banking Committee earlier this year.

"A temporary legal safe harbor for lenders will ensure the new requirements are implemented in an orderly manner and that consumers are not confused or, worse yet, impaired in their ability to purchase a home or refinance a loan," MBA said.  

In July, MBA and a number of industry trade groups sent a letter to House members urging support of H.R. 3192, emphasizing the importance of the safe harbor for lenders, the Consumer Financial Protection Bureau and consumers.  

"While the industry has been granted time to prepare for this new disclosure regime, there is no transition period for the regulation," the letter said. "A hold-harmless period allows the Bureau to work with industry to gather data about implementation and provide written guidance to address common industry implementation hurdles that emerge after these new disclosures are put into use." 

3d rendering of a row of luxury townhouses along a street

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