Congress Urges Delay on New Mortgage Rules
RACHEL WITKOWSKI | May 27, 2015
About 300 lawmakers from both the House and Senate have waged a bipartisan effort urging the Consumer Financial Protection Bureau to offer a “grace period” for lenders to comply with a new mortgage disclosure rule that is slated to take effect Aug. 1.
Read more: Last-minute Closing Changes to Get Difficult
Lawmakers sent letters last week asking the CFPB to grant banks, credit unions, and other lenders an extension of Dec. 31 before the agency enforces the new rule.
The new rule aims to streamline the disclosure process for home buyers during closing by merging the Truth in Lending Act and the Real Estate Settlement Procedures Act into one form. The new form is referred to as TRID.
The real estate industry has largely supported the new form but has also asked for more time as lenders get accustomed to using it. Earlier this month during the 2015 National Association of REALTORS® Legislative Meetings & Trade Expo in Washington, D.C., REALTORS® met with members of Congress to urge a grace period for the enforcement of the new closing process for residential transactions.
“As you know, August is a traditionally busy month in the real estate industry,” according to the May 21 bipartisan letter, which was signed by 41 senators. “Many real estate agents, lenders, and others who help our constituents buy or refinance homes are concerned about implementation of the new TRID disclosure forms, with no grace period, during the peak home buying season.”
The CFPB has declined to comment on the letters.
Source: American Banker