WASHINGTON (7/9/15)--Sen. Tim Scott (R-S.C.), along with 10 other co-sponsors, have introduced a Senate bill that would provide a temporary safe harbor for the upcoming Truth in Lending Act-Real Estate Settlement Procedures Act integrated disclosure (TRID) rule.
The Consumer Financial Protection Bureau (CFPB) has proposed to implement the rule Oct. 3--pushing the date back from the original Aug. 1 deadline.
Scott’s bill (S. 1711) would provide a temporary safe harbor from TRID enforcement through the end of the year. It is a companion bill to H.R. 2213, which CUNA supports.
CUNA signed a letter of support for H.R. 2213 last month, along with 18 other trade organizations representing credit unions, banks, mortgage insurers, other mortgage lenders, brokers, escrow, land title, appraisals, home builders, realtors and real estate service providers.
“A hold-harmless period helps ensure consumers’ real estate closings will not be disrupted after this complicated regulation’s Aug. 1 effective date,” the letter reads.
Many legislators, including 250 members of the House and 41 senators, have written to the CFPB urging the bureau to grant the safe harbor period. The bureau announced a proposal in June that would delay the original implementation date of Aug. 1 to Oct. 3.
In its comment letter on the delayed-date proposal, CUNA again pushed for the CFPB to implement a safe harbor period, noting that the safe harbor could help credit unions tackle the complexities of the new rule.