U.S. Reps Introduce ALTA-supported Restrained Enforcement Bill for TRID

May 5, 2015

Two House Financial Services Committee members introduced a bipartisan bill last week that would provide a temporary safe harbor from the enforcement of the Consumer Financial Protection Bureau’s TILA-RESPA Integrated Disclosure rule as long as companies show a good-faith effort to comply.

Introduced by Reps. Steve Pearce (R-N.M.) and Brad Sherman (D-Calif.), H.R. 2213 would provide for a hold harmless period of restrained enforcement and liability until Jan. 1, 2016, following the Aug. 1 implementation of TRID. Fifteen trade associations joined ALTA in a letter thanking Reps. Pearce and Sherman for introducing H.R. 2213.

Additionally, Reps. Blaine Luetkemeyer and Randy Neugebauer sent a letter to the CFPB asking for a hold harmless period of restrained enforcement and liability through the end of 2015. In March, ALTA joined 15 other groups encouraging the CFPB to implement restrained enforcement and liability period through the end of the year. The need for a hold-harmless period will be one of the issues that will be addressed with members of Congress during ALTA’s Federal Conference and Lobby Day.

“While the bureau provided 21 months to rewrite business processes, upgrade software and train staff to comply with the 1,888-page regulation,” said Michelle Korsmo, ALTA’s chief executive officer. “Unfortunately, our members are not able to test the processes to develop these new disclosures in real-life transactions before the implementation date. We know from implementing past regulations that unforeseen issues will arise in actual transactions. Therefore, a formal hold-harmless period through December 31 will allow our members to make a good-faith effort to comply with the TRID regulation without the fear of potential enforcement actions or lawsuits.”

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. Without more clarity, the result is likely to leave homebuyers with less flexibility to obtain the deal they bargained for and potentially fewer companies to work with, particularly in communities where real estate transactions are less frequent.


Contact ALTA at 202-296-3671 or communications@alta.org.