WASHINGTON–A broad coalition of groups has signed off on a letter to the House Financial Services Committee calling for passage of HR 3192, the Homebuyers Assistance Act, which will provide a reasonable hold-harmless period for enforcement of the of the Consumer Financial Protection Bureau’s TILA-RESPA Integrated Disclosures (TRID) regulation for those that make good-faith efforts to comply.
NAFCU and CUNA are among the signees.
“A hold-harmless period helps ensure consumers’ real estate closings will not be disrupted after this complicated regulation’s October 3 effective date,” the letter states. “We note that 250 Members of the House and 41 Senators have written to CFPB urging the action that this legislation would mandate.
“We appreciate that the Bureau indicated it will be sensitive to the progress made by those entities that make good-faith efforts to comply. At the same time, 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. This certainty will reduce the likelihood that consumers will experience delays or disruptions in the months following the October 3 implementation date. “We appreciate that the Bureau shares our goal for a smooth and successful implementation of the regulation. While the industry has been granted time to prepare for this new disclosure regime, there is no transition period for the regulation. 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 after these new disclosures are put into use.”
Among those signing the letter were the American Bankers Association, American Bankers Insurance Association, American Escrow Association, American Land Title Association Appraisal Institute, Appraisal Firm Coalition, Collateral Risk Network, Community Home Lenders Association, Community Mortgage Lenders of America, Consumer Mortgage Coalition, Consumer Bankers Association, Housing Policy Council of the Financial Services Roundtable, Independent Community Bankers of America, Mortgage Bankers Association, Home Builders National Association, Mortgage Brokers National Association of Realtors, Real Estate Services Providers Council, and the Real Estate Valuation Advocacy Association.