House to Vote on ALTA Supported TRID Hold-Harmless Bill

October 1, 2015

U.S. House of Representatives Majority Leader Kevin McCarthy announced that the House will vote next week on an ALTA supported bill that would provide limited liability for those who in good faith attempt to comply with the new TILA-RESPA Integrated Disclosure (TRID) requirements that go into effect Oct. 3.

Sponsored by U.S. Reps. French Hill (R-Ark.) and Brad Sherman (D-Calif.), the Homebuyers Assistance Act (H.R. 3192) would extend a hold-harmless period until Feb. 1, 2016. The bill also says that no lawsuit may be filed against a person for a violation of the TRID rule occurring before such date, so long as the person has made a good faith effort to comply.

McCarthy called the bill important “for everyone who is doing their best to comply with the Consumer Financial Protection Bureau’s (CFPB) mortgage loan transaction disclosure rule. This bipartisan bill provides certainty to businesses that are trying to comply with the rule as well as an opportunity to work out any implementation issues that come up. There is no reason that CFPB regulations should prevent homebuyers from being able to buy and close on a home.

“Owning a home has always been an important part of the American Dream, and government should never stop people from reaching that goal. Representative French Hill’s leadership on this bill means many Americans will be that much closer to achieving their American Dream,” McCarthy added.

During a hearing in September before the House Services Committee—which passed H.R. 3192 on July 9—Hill said that some 230,000 Americans refinance or buy a new home every month and “they’re going to be the ones who are victimized by this confusing rule that doesn’t get implemented properly do to a technology reason or a misunderstanding at a real estate brokerage, or a title company, or a bank.”

“I hope we can (pass H.R. 3192) before October 3, so that our title (companies), commercial banks, mortgage bankers, real estate agents all have some confidence that they can go into this new closing regime and not be penalized, either by the federal government or through civil liability,” Hill added. “We can't defend bureaucratic intransigence at the expense of our home-buying public.”

In addition to supporting H.R. 3192, ALTA joined 17 other industry groups urging federal regulators to provide formal guidance on how regulators plan to enforce TRID for the initial months following implementation on Oct. 3.

The letter asks the Federal Financial Institutions Examination Council (FFIEC) “to implement a clearly articulated transition period that addresses how regulators will oversee and examine regulated institutions for TRID compliance during this transition period.”

Without clear guidance, it’s expected access to mortgage credit will be constrained due to fear of enforcement actions for errors committed in good faith. The CFPB has said it will be sensitive to those making good-faith efforts to comply. CFPB Director Richard Cordray reiterated those remarks during testimony on Sept. 29.

“Transitioning to the new TRID regulatory framework is a sea change for every participant in the mortgage lending,” the letter stated. “Industry stakeholders have undertaken extensive efforts to comply with these rules, but, even now, they are discovering significant compliance issues. These discoveries raise liability concerns that cannot be realistically resolved before the October 3 deadline, as many will require formal authoritative guidance.”


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

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