Cramer: House Passes H.R. 3192 - Homebuyers Assistance Act

Press Release

Congressman Kevin Cramer today joined a majority of the U.S. House of Representatives in passing H.R. 3192, the Homebuyers Assistance Act. The bill provides a temporary legal safe harbor, until February 1, 2016, from enforcement of a Consumer Financial Protection Bureau (CFPB) rule requiring integrated disclosure requirements for mortgage loan transactions under the Truth in Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA).

The bill precludes lawsuits from being filed against any person for a violation of such requirements occurring before that date, as long as a good faith effort has been made to comply with the requirements.

"Small businesses and individuals should not be penalized as they attempt to comply with new and cumbersome financial regulations," said Cramer. "This legislation is a common-sense fix which allows people time to comply with the CFPB rule. I look forward to working with my colleagues to further reduce regulatory burden on small businesses and American consumers."

On Nov. 20, 2013, the CFPB finalized the Truth in Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA) Integrated Disclosure Rule (TRID). The rule combined certain disclosures consumers receive in applying for and closing on a residential mortgage loan, including disclosures required under TILA and RESPA. The new disclosures are generally referred to as the "combined" or "integrated" disclosures.

The TRID requires loan originators who receive an application to provide consumers a loan estimate form that provides the initial TILA disclosure and the Good Faith Estimate required under RESPA. "The rule also requires loan originators to provide consumers a Closing Disclosure form, which combines the final TILA disclosure and the HUD-1 Settlement Statement, at least three business days prior to consummation of the mortgage. The TRID also imposes record retention requirements and restricts mortgage originators from imposing certain fees, providing estimates, or requiring consumers to verify information before providing consumers with a Loan Estimate form."

On Jan. 20, 2015, the CFPB promulgated a series of amendments to the TRID, including "an extension of the time frame to issue a revised Loan Estimate when an interest rate moves from floating to locked from one to three business days, and a provision allowing for the disclosure that a creditor has reserved its right to issue a revised Loan Estimate for loans funding new construction."

These new regulations impose changes to the mortgage loan process which may pose implementation and compliance issues on mortgage lenders. Failure to comply with the new regulations may result in penalties for lenders and ultimately hamper the ability for people to receive home loans in a timely manner.

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