Trid Improvement Act of 2018
Floor Speech
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Mr. HILL. Mr. Speaker, I will yield myself such time as I may consume.
Mr. Speaker, I rise today in favor of my bill, H.R. 5078, the TRID Improvement Act. This important package will cut through the red tape and level the playing field for making sure that regulations are smarter, fairer, clearer, and more efficient, while, at the same time, ensure that consumers and investors are protected.
You know, Mr. Speaker, when the CFPB, the Consumer Financial Protection Bureau, was first initiated as a part of the Dodd-Frank Act, one of now-Senator Elizabeth Warren's goals was simpler regulation, that we would streamline regulation, that we would take bulky complex consumer forms and make them simpler. And the TILA-RESPA, truth-in- lending form and the real estate settlement form, were examples in those early days that they were going to make these forms simpler and easier for consumers.
Well, that is what we are talking about today, Mr. Speaker, for it did not become simpler and easier. It became costly, complex, and difficult for consumers.
Today, we are back on the floor on this issue. It is not a new issue or a new concern because the confusion related to TRID has been apparent for years.
In November 2013, the CFPB finalized TRID, combining, as I said, the truth-in-lending form with the real estate settlement procedures form necessary for consumers in this country to close a home loan to have that American Dream. The effective date for this final rule was originally set for mortgage applications received on or after August 1, 2015, but due to the administrative errors of the CFPB, the agency delayed it until October 3, 2015.
In October, the House of Representatives passed H.R. 3192, the Homebuyers Assistance Act, which I proudly sponsored, and it passed with a bipartisan vote in this House of 303-121. It would have provided a hold-harmless period for those trying to make a good faith effort to comply with this complex rule.
In April 2016, with complaints pouring in from both homeowners, homebuyers, consumers, bankers, title companies, the CFPB decided to reopen the rulemaking on TILA-RESPA and the TRID rule. The CFPB issued a final rule clarifying and amending certain mortgage disclosure provisions.
So as you can hear from this long story, Mr. Speaker, this rule is complex. So we are here today to try to fix a part of it, a small part of it that will make it easier, better, and more clearer for consumers.
The American Bankers Association stated that if there was one thing to fix about the current regulatory system, it would be the TILA-RESPA Integrated Disclosure rule, TRID--not qualified mortgage definitions, not the Volcker rule, the TRID rule. Mortgage lenders have seen regulatory change around every aspect of their lending for the last 8 years, and this rule is no exception.
Today, Mr. Speaker, over in the House Small Business Committee, the GAO testified. They have issued a report about the TILA-RESPA Integrated Disclosure rule. They told the committee today that this rule was one of the most expensive facing community banking across the country, the most burdensome.
So here, the TILA-RESPA rule before our House Small Business Committee says that we are burdening community banks, and they, in turn, are not able to do the kind of work that we want, that we expect for our homebuyers of homes across this country.
CFPB Associate Director David Silberman said the Bureau agreed with the GAO's recommendation, that it assessed the effectiveness of the TRID guidance and that it intended to ask the public for input on ways to improve regulatory guidance.
Well, Mr. Speaker, I am glad to have this report from the GAO, but we have been calling for this for almost 2\1/2\ years that we want this rule made simpler and more direct and better for our consumers.
H.R. 5078 fixes the title insurance disclosures so that consumers actually know what their expenses are going to be for title insurance. And despite our best efforts, the CFPB has been unwilling to fix this problem on its own; so today, Congress comes to act.
The other aspect of this bill--and I want to thank my good friend from Minnesota (Mr. Ellison) and my good friend from North Carolina (Mr. Pittenger) for the second portion of this bill, the Credit Access and Inclusion Act of 2017.
The Credit Access and Inclusion Act amends the Fair Credit Reporting Act to allow the reporting of certain positive consumer credit information for consumer reporting agencies. Specifically, a person or the Department of Housing and Urban Development might report information related to a consumer's performance in making payments either under a lease arrangement for a dwelling or pursuant to a contract providing utility or telecommunication services. This kind of positive reporting on a consumer's ability to make their payments on time will help more families in our country build a credit record.
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Mr. HILL. Mr. Speaker, I thank my friend from Minnesota for his work on this bill and providing the chance to build a credit file for those who really need it.
Mr. Speaker, I am pleased to yield 2 minutes to the gentleman from North Carolina (Mr. Pittenger), my friend, who, this week, I know, is having a touching time with his almost five decades of friendship with Reverend Billy Graham--we all salute their work together for the betterment of our world--and who is the vice chairman of the Financial Services Subcommittee on Terrorism and Illicit Finance.
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Mr. HILL. Mr. Speaker, I again thank Mr. Pittenger and Mr. Ellison for their work on this measure, and for all of my colleagues on both sides of the aisle who have brought these bills to the floor and, particularly, for speaking out for consumers on bills that will help consumers have more access to credit, whether it is a mortgage and a speedier, easier, more transparent mortgage closing or the chance to build credit, with the work from my friend from Minnesota and my friend from North Carolina.
Mr. Speaker, I have no further requests for time, and I yield back the balance of my time.
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