Financial Services Committee Passes Hill's Homebuyers Assistance Act

Press Release

Today, the House Financial Services Committee passed H.R. 3192, the Homebuyers Assistance Act, which would provide a temporary legal safe harbor for those making a good-faith effort to comply with the Consumer Financial Protection Bureau's (CFPB) new mortgage disclosure rule--the TILA-RESPA Integrated Disclosure (TRID) rule--which is set to take effect on October 3, 2015.

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 wrote the CFPB to request a formal hold-harmless period.

H.R. 3192 does not delay implementation of the TRID rule, but rather, provides a temporary safe harbor to those who are making a good faith effort to comply until February 1, 2016.

Congressman French Hill (AR-2) released the following statement after the bill passed the Committee by a bipartisan vote of 45-13:

"While I appreciate the CFPB's willingness to be sensitive to real estate and mortgage industry concerns regarding TRID implementation, a formal hold-harmless period is necessary to hold them to their word and guarantee no punishment for good-faith compliance efforts. Any substantial change presents compliance challenges, and there will not be an opportunity to test new systems and forms necessary to implement this very complex rule. This temporary grace period will allow the industry to work with the CFPB to help ensure a smooth transition and prevent costly market disruptions and delays from consumers. I thank my colleagues, Congressmen Pearce and Sherman, for their work on this commonsense bill to ensure real estate closings are not disrupted."

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