With the Aug. 1, 2015, date for complying with the regulations
implementing the TILA-RESPA Integrated Disclosure (TRID) requirements occurring
in less than two months, the Consumer Financial Protection Bureau has sent a letter
to Sens. Joe Donnelly (D-Ind) and Tim Scott (R-SC) stating that the bureau’s
oversight of the TRID implementation “will be sensitive to the progress made by
those entities that have been squarely focused on making good-faith efforts to
come into compliance with the rule on time.”
The TRID rule combines certain disclosures that consumers receive in connection with
applying for and closing on a mortgage loan under the Truth in Lending Act and
the Real Estate Settlement Procedures Act.
Hold harmless. Industry
stakeholders have called upon the CFPB to establish a “hold harmless period of
enforcement and liability” for institutions that, acting in good faith, are
unable to comply with TRID.
Grace period. Besides a letter
sent to the CFPB by Donnelly and Scott, many other members of Congress have
also called for a grace period until the end of 2015 for financial institutions
that are making a good faith effort to comply with TRID. More than 250 members
of the House, led by Reps. Andy Barr (R-Ky.), Carolyn Maloney (D-N.Y.), and Maxine
Waters (D-Calif.), sent a similar letter to the CPFB director. In their letter, the representatives
noted also that January and February are consistently the slowest months of the
year for home sales, making them more ideal for implementation.
Consumer expectations. The
CFPB letter to Donnelly and Scott was mentioned in a bureau blog posting apprising consumers what to expect under TRID. The blog posting
also provided a factsheet
explaining the changes.
Following the CFPB’s action, a diverse group of 19 financial
services trade groups, led by the American Bankers Association, have called upon
Rep. Jeb Hensarling (R-Texas), the Chairman of the House Financial Services
Committee, and Rep. Maxine Waters (D-Calif.), the committee’s Ranking Member,
to pass H.R. 2213 which was introduced by Reps. Steve Pearce (R-N.M.) and Brad
Sherman (D-Calif.), and would provide a reasonable hold-harmless period for
enforcement of the of the TRID regulation for those lenders and settlement
service providers that make good-faith efforts to comply.
In their letter to Hensarling and Waters, the groups noted that a hold-harmless period
helps ensure consumers’ real estate closings will not be disrupted after this
complicated regulation’s Aug. 1, 2015 effective date.
They also added that, although the CFPB’s action was appreciated, the
industry needs more certainty that their good-faith efforts to comply while
still meeting consumers’ expectations does not expose lenders and settlement
service providers to litigation during the initial period after the regulation
becomes effective.
