Just days after the new TILA-RESPA Integrated Disclosure rule goes into effect on Oct. 3, the House of Representatives will have a vote on a bill that would formalize the Consumer Financial Protection Bureau’s hold harmless grace period.
In his semi-annual report to the House on Tuesday, CFPB Director Richard Cordray said that the agency will implement a formal “hold harmless” grace period for lenders dealing with the onerous requirements of the TRID rule, but it is not a formal or defined period.
He said the CFPB will have an informal grace period “for some period of months, I’m not going to be specific here … will be diagnostic not punitive.”
The House Financial Services Committee on Wednesday evening passed H.R. 3192, the Homebuyers Assistance Act, which would make the period official.
“Next week, the House will vote on the Homebuyers Assistance Act—an important bill for everyone who is doing their best to comply with the Consumer Financial Protection Bureau’s mortgage loan transaction disclosure rule,” said House Majority Leader Kevin McCarthy. “This bipartisan bill provides certainty to businesses that are trying to comply with the rule as well as an opportunity to work out any implementation issues that come up. There is no reason that CFPB regulations should prevent homebuyers from being able to buy and close on a home.
“Owning a home has always been an important part of the American Dream, and the government should never stop people from reaching that goal. Representative French Hill’s (R-Ark.) leadership on this bill means many Americans will be that much closer to achieving their American Dream,” McCarthy said.
The bill was co-sponsored by Rep. Brad Sherman, D-Calif.
NAMB – The Association of Mortgage Professionals, today announced its support for the passage of H.R. 3192 legislation directing the CFPB to provide the hold harmless period through the end of 2015 for companies that make a good-faith effort to comply with TRID.
“While we’re encouraged by assurances made by CFPB Director Cordray to the House Financial Services Committee that there won’t be punitive actions taken against companies that make a good-faith effort to comply with TRID,” said Rocke Andrews, president-elect of NAMB. “We are still hopeful that Congress will take action to protect consumers and reduce disruption of the real estate market."
“We take director Cordray at his word that he is limited in his ability to interpret the original language in the TRID law,” added Andrews. “That’s why NAMB and the other key organizations within the mortgage, housing and real estate industries have been urging Congress to provide greater clarity for how the CFPB should proceed.”