On July 29, 2015, the U.S. House Financial Services Committee passed H.R. 3192 (Rep. Hill, R-AR), which would delay the Consumer Financial Protection Bureau’s (CFPB) enforcement of the new Truth in Lending Act and the Real Estate Settlement Procedures Act (TILA-RESPA) integrated disclosure rule. The rule, which was finalized in November 2013, combines TILA with RESPA into one mortgage disclosure, known as TRID. The rule was meant to go into effect August 1, 2015, but the agency extended the implementation date to October 3, 2015 as the result of a clerical error.
The legislation would delay the CFPB’s ability to enforce violations of its new mortgage disclosure form if lenders have made a “good-faith effort” to comply. The bill passed the committee by a vote of vote 45 to 13. The measure does not delay the effective date of the TRID rule but would forbid private lawsuits or CFPB enforcement actions related to violations of the rule until Feb. 1, 2016. It is not certain when this bill will come before the full U.S. House for a vote.
CFPB Director Richard Cordray recently told the U.S. Senate Banking Committee the Bureau’s compliance review will be sensitive to good faith efforts and corrective, not punitive, “for many months.” Critics, including NAR, still argue lenders need more time to get their systems fully compliant with the rule.