WASHINGTON (3/31/15)--Why have compliance disclosure reforms gone into effect during what is traditionally the busiest month for home closings?
That's the question two key lawmakers asked the Consumer Financial Protection Bureau (CFPB) Monday regarding the bureau's Truth in Lending Act-Real Estate Settlement Procedures Act (TILA-RESPA) integrated disclosures rule, which is scheduled to be implemented Aug. 1.
CUNA has urged the CFPB to allow a lengthy implementation period for the TILA-RESPA rule due to the complexity of the issue.
Rep. Blaine Luetkemeyer (R-Mo.), chair of the House Financial Services subcommittee on housing and insurance, and Rep. Randy Neugebauer (R-Texas), chair of the House Financial Services subcommittee on financial institutions on consumer credit, expressed their concerns about such a major change taking place during peak homebuying season.
The legislators said that, since many homebuyers look to move into new houses before the start of the school year, 10 of the 25 busiest days for existing home closings in 2014 were in August. Conversely, 19 of the slowest days for home closings in 2014 were in January or February.
"We strongly encourage you to make the Aug. 1, 2015 to Dec. 31, 2015 timeframe a 'hold harmless' period of restrained enforcement and liability," the legislators wrote. "This would allow all parties to better understand the changes associated with [TILA-RESPA] and help ensure consumer confidence and stability in the nation's housing market."