Politics & MoneyMortgage

House to vote on TRID grace period Wednesday

Would formally extend it until Feb. 1, 2016

Congressional sources tell HousingWire the House will consider H.R. 3192, the Homebuyers Assistance Act, sponsored by Rep. French Hill, R-Ark., Wednesday afternoon. 

The House will consider the bill, which would create a concrete grace period through Feb. 1, 2016 for the TILA-RESPA Integrated Disclosure rule that went into effect Oct. 3.

A number of trade associations have voiced their support for the bill, including the National Association of Realtors, Mortgage Bankers Association, and others.

Tuesday, the National Association of Federal Credit Unions joined the chorus of support.

NAFCU Vice President of Legislative Affairs Brad Thaler sent a letter to House Speaker John Boehner and Minority Leader Nancy Pelosi urging them to support and pass the measure. Members of the U.S. House of Representatives were copied on the letter.

"This bipartisan legislation, introduced by Representatives French Hill and Brad Sherman, would prevent the enforcement of new integrated disclosure requirements for mortgage transactions under the Real Estate Settlement Procedures Act and the Truth in Lending Act before February 1, 2016, so long as a good faith effort to comply is made," says Thaler. “The new disclosure requirements had a hard start date, and there has been no grace period in which mortgage lenders are able to test their new systems. Many of these lenders may rely on outside vendors to have everything correct, and this can lead to unintentional errors while making a good faith effort to comply.

“While National Credit Union Administration Chairman Debbie Matz has indicated that NCUA will consider credit unions’ ‘good faith efforts toward substantial compliance’ relative to TRID, and (Consumer Financial Protection Bureau) Director Cordray has made similar statements, NAFCU and our members remain concerned over unresolved ambiguities in the regulation,” Thaler says. “This legislation will erase all doubt and allow mortgage lenders to comply without fear of enforcement actions.” 

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