While praising industry leaders for their efforts to clarify the TRID regulations set to take effect on Oct. 3, 2015, two key U.S. House Financial Services Subcommittee Chairmen have written to NAMB—The Association of Mortgage Professionals, and other industry leaders to express their disappointment in the CFPB Director's unwillingness to respond to consumer and industry concerns about the new regulation.
Despite the clear bipartisan support the two chairmen say has been demonstrated in the U.S. House of Representatives urging Richard Cordray to do so, Reps. Blaine Luetkemeyer, who chairs the Subcommittee on Housing and Insurance, and Randy Neugebauer, chair of the Financial Institutions and Consumer Credit Subcommittee, warn industry leaders that it is apparent the CFPB Director will press forward without adequately considering the overwhelming and bipartisan support for a continued "hold harmless" period though the end of 2015 and into 2016.
"We very much appreciate the efforts of Subcommittee Chairs Luetkemeyer, Neugebauer, and the Chairman of the full committee, Jeb Hensarling, "said Rocke Andrews, president-elect of NAMB. "Their efforts and the efforts of Congressmen Hill and Sherman and the bipartisan group of supporters of H.R. 3192, The Homebuyers Assistance Act, which will provide for a hold harmless period through the end of January 2016. The mortgage industry continues to brace itself for potential disruption to consumers' homebuying experience due to the complexity with the new TRID rule. It is extremely important for industry stakeholders to receive the much needed hold harmless protections as proposed by HR 3192."
"Without the protections from civil damages contained in HR 3192," continued Andrews, " you can be certain that mortgage professionals who are making the most sincere 'good faith' efforts imaginable to comply with the new rule may still choose to conduct business much more conservatively than may be necessary. This will only make access to credit much more difficult for homebuyers. HR 3192 needs to be passed by Congress and signed into law by the President in order for mortgage companies to operate without the fear of litigation over computer glitches and other minor errors that do not even begin to approach bad behavior. Assurances from the CFPB are simply not adequate and Chairs Luetkemeyer and Neugebauer are correct saying so."
