House subcommittee studies integrated disclosure costs v. benefits today

May 14, 2015

WASHINGTON (5/14/15)--Discussion of a bill to provide a temporary liability safe harbor for the Consumer Financial Protection Bureau’s (CFPB) upcoming mortgage disclosure rule will highlight a hearing conducted today by the U.S. House Financial Services subcommittee on housing and insurance. The hearing will examine the costs versus the benefits of the CFPB’s Truth in Lending Act-Real Estate Settlement Procedures Act integrated disclosure (TRID) rule.

The rule has a scheduled implementation date of Aug. 1. A bill introduced last week by Reps. Steve Pearce (R-N.M.) and Brad Sherman (D-Calif.) would provide a temporary delay in enforcement and a liability safe harbor until Jan. 1, 2016.

CUNA supports the legislation saying the safe harbor period will allow credit unions and other financial institutions to make a good-faith effort to comply with TRID without fear of potential enforcement.

 According to the subcommittee, testimony at today’s hearing will focus on TRID’s impact on the real estate market, implementation and compliance costs associated with the rule, and a comparison of costs and benefits expected to come as a result of the rule.

The following witnesses are scheduled to speak:

  • Cynthia Lowman, president of United Bank Mortgage Corporation, on behalf of the American Bankers Association;
  • Diane Evans, vice president of Land Title Guaranty Company, on behalf of the American Land Title Association;
  • Laurie Goodman, center director of the Urban Institute’s Housing Finance Policy Center; and
  • Chris Polychron, executive broker with 1st Choice Realty, on behalf of the National Association of Realtors. 

The hearing is scheduled to begin at 2 p.m. (ET), and will be streamed online via the committee’s website.