Two Republican lawmakers have written a letter to the Consumer Financial Protection Bureau (CFPB) director asking for the delay of the combined Truth in Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA) mortgage disclosure forms.
TILA-RESPA is scheduled to go into effect on August 1, but U.S. Representatives Blaine Luetkemeyer (R-Missouri) and Randy Neugebauer (R-Texas) have asked the CFPB to hold off until January 1 in a letter recently sent to the Bureau's director,Richard Cordray. The Congressman said in the letter that summertime is one of the busiest for mortgages and that the enactment of TILA-RESPA could be disruptive to home sales and loan closings.
The rule was first created out of the Dodd-Frank Wall Street Reform Act of 2010, and it was finalized late in 2013 following a comment period and months of education, training, and preparation on the part of lenders. The preparation has continued as many lenders are taking all the necessary steps to make sure they have all the systems in place and are in complete compliance with the new rule.
Luetkemeyer and Neugebauer asked in their letter for a five-month “hold harmless” period from August 1, 2015 until December 31, 2015 to “help ensure consumer confidence and stability in the nation's housing market.” The Congressmen said in their letter that the proposed five-month "hold harmless" period will give all those involved with the mortgage loan closing process more time to educate themselves on the rule and will give the CFPB more time to address any issues that might arise. They asked for Cordray to respond by April 17.
Both Luetkemeyer and Neugebauer are chairmen of subcommittees in the House Financial Services Committee. Leutkemeyer is the head of the Housing and Insurance Subcommittee, and Neugebauer is chair of the Financial Institutions and Consumer Credit Subcommittee.