WASHINGTON (10/6/15)--A bill providing a safe harbor from enforcement and litigation of the Consumer Financial Protection Bureau’s (CFPB) new mortgage disclosure rule recognizes the “unavoidable learning curve” that comes with such a change, CUNA and more than 25 other organizations told U.S. House members Monday. The House is scheduled to vote on the Homebuyers Assistance Act (H.R. 3192) Wednesday.
Introduced by Reps. French Hill (R-Ark.) and Brad Sherman (D-Calif.), H.R. 3192 would provide an official hold harmless period for the CFPB’s Truth in Lending Act-Real Estate Settlement Procedures Act integrated disclosure (TRID) rule, which became effective Oct. 3. The safe harbor would be in place until Feb. 1, 2016.
“This learning curve may be particularly steep for TRID because these new forms and systems have yet to be used in an actual homebuyer transaction,” the letter reads. “A formal hold-harmless period will help ensure the real estate settlement and mortgage lending industries can adapt their business processes and continue to meet homebuyers’ needs during the first few months following the Oct. 3 implementation.”
The bill passed the House Financial Services Committee in July by a 45-13 vote.
CFPB Director Richard Cordray, in his testimony before the House Financial Services Committee last week, said the bureau would not look to punish mortgage industry stakeholders after Oct. 3, but CUNA has pushed for a formal hold harmless period to protect the industry from liability risk.
“We respectfully request that you vote in favor of the Homebuyers Assistance Act to prevent unnecessary, frustrating, and sometimes costly delays for consumers who buy homes in your communities this fall,” the letter reads.
For more coverage of this week in Congress, see “TRID safe harbor vote highlights week in Congress” in today’s News Now.