WASHINGTON (9/28/15)--Federal lawmakers from New Hampshire requested the Consumer Financial Protection Bureau (CFPB) add a grace period for compliance with its new mortgage rule through Jan. 1, 2016 in a letter sent last week.
The bureau’s Truth in Lending Act-Real Estate Settlement Procedures Act integrated disclosures (TRID) rule is scheduled to go into effect Oct. 3, but CUNA and other mortgage industry stakeholders have pressed for a hold-harmless period for compliance and enforcement.
The rule aims to simplify the mortgage process and allow consumers to more easily understand the costs of a mortgage, most notably through the introduction of two new forms, the Loan Estimate and Closing Disclosure.
“Since these forms and processes have not been used in real time, a grace period would allow the CFPB and stakeholders to determine whether forms and processes need to be adjusted during the transition period,” the New Hampshire legislators wrote. “In addition, providing certainty to stakeholders who work in good faith to properly utilize TRID will encourage a more seamless implementation of the new disclosures, while still protecting consumers from unfair trade practices.”
Sens. Kelly Ayotte (R) and Jeanne Shaheen (D), as well as Reps. Frank Guinta (R) and Ann McLane Kuster (D), signed the letter.
Guinta serves on the House Financial Services Committee, and has been briefed on the operational impact of TRID by New Hampshire credit unions. Guinta has said he will address the matter directly with CFPB Director Richard Cordray during Cordray’s appearance before the committee Tuesday for his semi-annual report to Congress.
The bureau has stated that it would show leniency to lenders making good faith efforts to comply, but CUNA has pushed for a firm safe harbor.