Despite the recent announcement from the Consumer Financial Protection Bureau (CFPB) to provide a grace period for servicers attempting to comply in good faith with the TILA-RESPA Integrated Disclosure (TRID) requirements that are scheduled to go into effect August 1, lingering TRID concerns remain.
The National Association of Mortgage Brokers (NAMB) and other housing associations, requested today in a letter that the CFPB implement a hold-harmless period on TRID enforcement. Many housing industry groups are supporting legislation that would above this period, the press release says.
"NAMB has repeatedly warned the policy makers in Washington, D.C. that, while everyone involved is doing their very best to be ready, there is just too much uncertainty surrounding the August 1 TRID deadline ," said John Councilman, NAMB president. "Today we're urging Congress and the President to make this clear for the CFPB," added Councilman. "Pass and and sign H.R. 2213 into law right away and remove the uncertainty in the mortgage market as we head into summer."
The request is supported by NAMB and numerous other housing industry associations, H.R. 2213, and is sponsored by Congressman Steve Pearce (R-New Mexico), according to the release. It will provide a reasonable hold-harmless period for enforcement of the CFPB’s TRID regulation for those that make good-faith efforts to comply. A hold-harmless period will help ensure that consumers’ real estate closings are not affected by the new regulation.
“We appreciate that the Bureau indicated it will be sensitive to the progress made by those entities that make good-faith efforts to comply,” said industry leaders in the letter to House Financial Services Committee Chairman Jeb Hensarling and Ranking Democrat Maxine Waters. “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 August 1 implementation date.”
The NAMB has requested that Congress correct a number of flawed aspects of the Dodd-Frank Act and other flawed federal laws that are slowing the economic recovery and harming consumers, small businesses, and the housing sector.
“We appreciate that the Bureau shares our goal for a smooth and successful implementation of the regulation,” the letter stated. “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.”
Click here to view the complete letter to the CFPB.