WASHINGTON (7/14/15)--A reasonable hold-harmless period for the Truth in Lending Act-Real Estate Settlement Procedures Act integrated disclosure (TRID) rule would help all involved, CUNA and other trade organizations said Monday.
The organizations sent a letter in support of S. 1711, a companion to a House bill that would require the Consumer Financial Protection Bureau (CFPB) provide a TRID safe harbor through the end of the year.
“A hold-harmless period allows the bureau to work with industry to gather data about implementation and provide written guidance to address common industry implementation hurdles that emerge between now and the end of the year,” the letter reads. “Without more clarity, the result is likely to leave homebuyers with less flexibility to buy and close on a home on their terms and potentially fewer companies to work with.”
Eighteen other trade organizations joined CUNA in signing the letter, representing the wide spectrum of stakeholders in the mortgage industry. The groups cite past experiences when it comes to new regulations.
“We know from implementing past regulations that unforeseen issues will arise in actual transactions. Therefore, a formal hold-harmless period through Dec. 31 will allow stakeholders to make a good-faith effort to comply with the TRID regulation without the fear of potential enforcement actions or lawsuits,” the letter reads.
S. 1711 was introduced last week by Sen. Tim Scott (R-S.C.) and 10 co-sponsors as a companion bill to H.R. 2213.
TRID was originally planned to be implemented Aug. 1, but the CFPB has proposed to move the date back to Oct. 3. CUNA, along with a number of legislators and trade organizations, are pushing for the safe harbor through the end of the year to protect stakeholders from enforcement or litigation.