WASHINGTON—NAFCU and CUNA, along with several other trade groups, have sent a joint letter to Reps. Steve Pearce (R-N.M.) and Brad Sherman (D-CA), thanking them for introducing H.R. 2213.
The bill provides a reasonable hold-harmless period through the end of the year following the Aug. 1 effective date of the Consumer Financial Protection Bureau’s TILA-RESPA Integrated Disclosures (TRID) regulation.
“We share the Bureau’s goal that these new disclosures help consumers better understand their terms when they buy a home or refinance their mortgage,” the group wrote. “Stakeholders are rewriting business processes, upgrading software and training staff to comply with the 1,888-page regulation. Unfortunately, stakeholders are not able to test the processes used to develop these new disclosures in real-life transactions before the implementation date. And, covered loans originated prior to August 1st will need to follow the old rules and forms through loan closing, which creates an environment ripe for human errors.”
The group continued saying they know from implementing past regulations that unforeseen issues will arise in actual transactions.
“Therefore, a formal hold-harmless period through December 31 will allow stakeholders 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 buy and close on a home on their terms and potentially fewer companies to work with.”
The American Bankers Association, the Consumer Bankers Association, the Independent Community Bankers of America and the National Association of Realtors are among the 16 organizations signing the letter.
May 1, NAFCU Vice President of Legislative Affairs Brad Thaler applauded the introduction of H.R. 2213, saying, “NAFCU appreciates the bipartisan leadership shown by Representatives Pearce and Sherman in proposing a bill that would allow credit unions and other financial institutions a grace period for enforcement and liability for institutions striving to make good-faith efforts to comply with the new TILA/RESPA regulations. This legislation will allow credit unions to make a good-faith effort to comply with the regulation without the fear of potential enforcement actions or lawsuits without creating any delays in implementation.”