WASHINGTON –Legislation that would create a hold-harmless period in the Truth in Lending Act-Real Estate Settlement Procedures Act integrated disclosure (TRID) rule through Feb. 1, 2016 passed the House yesterday. The White House, however, continues to threaten to veto the bill.
HR 3192, the Homebuyers Assistance Act, has the backing of both CUNA and NAFCU. The object of the bill is to protect mortgage stakeholders making a good faith effort to comply with TRID from enforcement and litigation during the hold-harmless period.
“This legislation is important for credit unions as they work in good faith to comply with the TRID rule, which became effective Oct. 3,” said Ryan Donovan, CUNA chief advocacy officer. “CUNA and other stakeholders repeatedly asked the CFPB to provide a formal hold-harmless period to ensure the rule has minimal impact on consumers and residential home mortgage closings. We thank the House for their quick action on this important issue and urge the Senate to do the same.”
The legislation was co-sponsored by Rep. French Hill (R-AR) and Rep. Brad Sherman (D-CA).
“We thank Reps. French Hill and Brad Sherman for their leadership in introducing H.R. 3192 and shepherding it through the House,” said NAFCU VP-Legislative Affairs Brad Thaler. “This legislation will erase all doubt and allow mortgage lenders to comply without fear of enforcement actions. We look forward to continuing to work with Congress to help advance the legislation. ”
The bill now goes to the Senate, where Sen. Tim Scott (R-SC) has introduced a companion bill as S. 1711.
The White House this week threatened a veto of H.R. 3192.