WASHINGTON -- Over 20 mortgage and real estate-related trade groups are urging Congress to provide a hold-harmless period till Feb. 1 for any errors regarding implementation of the integrated Respa-TILA mortgage disclosures.
The Consumer Financial Protection Bureau has provided an informal grace period for lenders that make a good-faith effort to comply with the TRID requirements.
But lenders, title companies and appraisers are concerned that CFPB's grace period will not protect them from liability. "Congress should recognize this risk and protect industry from regulatory and civil liability risk as it makes good-faith efforts to comply with the many new TRID requirement," according to a Dec. 2 joint letter sent to key House leaders.
In early October, the House passed a Homebuyer Assistance Act by a 303-121 vote that would delay enforcement of new TRID mortgage disclosures for a few months. It has not been approved by the Senate.
The trade groups are urging House Speaker Paul Ryan, R-Wis., to include the bill in budget legislation that would likely clear the Senate and be signed by the President Obama. But adding it could complicate the budget bill's chances of passage as Democrats have vowed to oppose any significant changes to banking policy.