On November 20, 2013, the CFPB finalized TRID, which combined certain disclosures that consumers receive in applying for and closing on a residential mortgage loan, including disclosures required under the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA). The effective date for the final rule was originally set for mortgage applications received on or after August 1, 2015, but due to “administrative errors,” the CFPB delayed the effective date until October 3, 2015.

The settlement process is an integral piece of a real estate transition, so any glitch or delay in the process affects buyers and sellers and all parts of the real estate industry, including realtors, bankers, homebuilders, and title companies.  Almost 300 Senators and House Members, including House Financial Services Committee Ranking Member Maxine Waters,  wrote the CFPB to request a “grace period” through the end of the year for those seeking to comply with the rule in good faith.

CFPB Director Richard Cordray has acknowledged that industry will not be perfect on the first day of implementation and that the CFPB would be diagnostic and corrective, rather than punitive, but he has stopped short of implementing a hold-harmless period.

After the bill passed the House, Congressman Hill released the following statement:

“This is a straightforward measure that will provide our title companies, bankers, and others in the industry who are earnestly trying to comply with the TRID rule the confidence and certainty needed to properly transition into this new closing regime. I am happy members on both sides of the aisle were able to come together and move legislation that will prevent costly market disruptions and delays for American homebuyers. I strongly urge the Senate to act immediately so we can shelter from punishment those acting in good faith to meet the criteria of this 1,888-page rule.” – Congressman French Hill

American Land Title Association (ALTA), Arkansas Realtors Association, Arkansas Bankers Association, and Arkansas Land Title Association released the following statements in support of H.R. 3192:

Passage of H.R. 3192 allows all mortgage lenders, title companies and Realtors to vigorously pursue residential real estate transactions without fear of predatory civil law suits.  History has shown that the positive economic impact of each home purchase is significant with the creation of jobs for renovation, the manufacture and sale of home furnishings, and landscaping.  – Wally Loveless, Legislative Committee Member, Arkansas Realtors Association 

“We thank Representative French Hill for his leadership in bringing this important bill to a House vote. There will be a learning curve as industry professionals adjust to the new requirements. Representative Hill  understands the real world implications and the efforts of those working to implement such a complex regulation and hs bill will make a big difference for consumers.” – Michelle Korsmo, CEO, ALTA

“Congressman Hill’s H.R. 3192 is sound legislation designed to allow bankers the appropriate time to fully implement all of the new TRID requirements. They can execute the new systems, forms and processes; and now will have the time necessary to test for quality assurance and an orderly transition of this complex new program that effects most residential mortgage transactions. With this delay of enforcement we can  minimize the unintended negative impacts on consumers.” – Bill Holmes, President & CEO, Arkansas Bankers Association

The Arkansas Land Title Association and its members thank Congressman Hill for spearheading this important bill. While the industry had 21 months to prepare for the new requirements, the rule prohibited the use of the new forms until after the Oct. 3 implementation date. Lenders and title companies are just now able to use the disclosures in real-world real estate transactions. Circumstances are likely to arise that have not yet been contemplated and industry professionals will need to determine how to resolve these unknown situations while complying with the 1,888-page TRID regulation. Representative Hill’s bill will reduce the likelihood that consumers will experience delays or disruptions when purchasing a home or refinancing a mortgage. – Jim Pender, President, Arkansas Land Title Association