NAMB—The Association of Mortgage Professionals has joined other mortgage industry leaders this week, including the American Land Title Association (ALTA) and the National Association of Realtors (NAR), in calling for a good faith grace period for compliance with the massive TILA-RESPA Integrated Disclosure (TRID) requirements that are scheduled to go into effect Aug. 1, 2015.
"The U.S. House Financial Services Subcommittee on Housing and Finance should be commended for holding a hearing this week to shine a light on the impending problems with TRID enforcement scheduled for Aug. 1, the busiest time of the year in the home buying cycle," said John Councilman, president of NAMB. "While we appreciate the CFPB's efforts to create new integrated forms that are more logical and consumer friendly than those originally proposed, NAMB continues to believe the strict requirements and exposure to legal liability that lenders are subject to under the new rules will lead to a variety of unintended consequences that will have a negative impact on consumers and the economy."
According to the NAMB, this additional time would allow the CFPB to provide written answers to industry questions regarding compliance that firms could then rely on to operate within the law under the pending regulations.
"If CFPB Director Cordray maintains that his agency is constrained by the language in Dodd-Frank on this and in other areas which are harmful to potential homebuyers, then we believe it is time, long past time, for Congress and the President to come together and make corrections to the flawed Dodd-Frank Act," said Councilman. "We understand, however, that it is highly unlikely that Congress and the White House will be able to agree on legislative changes to Dodd-Frank between now and August. So in the spirit of common sense, we urge CFPB Director Cordray to heed the warnings of our fellow industry leaders and provide a good faith grace period for compliance with TRID from Aug. 1 through the end of 2015"