The House of Representatives voted Wednesday to pass a bipartisan bill (303-121) that will provide a "hold harmless" grace period for the Consumer Financial Protection Bureau's (CFPB's) TILA-RESPA Integrated Disclosure (TRID) Rule, which went into effect October 3.
The Homebuyers Assistance Act (H.R. 3192) provides the mortgage industry with a grace period through February 1, 2016, by protecting them from enforcement actions if they make a good faith effort to comply with the TRID regulation.
The Act passed through the House Financial Services Committee last week.
The White House attempted to veto the Homebuyers Assistance Act on Tuesday, according to a Statement of Administrative Policy.
"The CFPB has already clearly stated that initial examinations will evaluate good faith efforts by lenders," the White House wrote. "The Administration strongly opposes H.R. 3192, as it would unnecessarily delay implementation of important consumer protections designed to eradicate opaque lending practices that contribute to risky mortgages, hurt homeowners by removing the private right of action for violations, and undercut the Nation’s financial stability. If the President were presented with H.R. 3192, his senior advisors would recommend that he veto the bill."
House Majority Leader Kevin McCarthy recently released a statement announcing that the House will vote on the Homebuyers Assistance Act next week for those putting forth effort to comply with TRID.
"This bipartisan bill provides certainty to businesses that are trying to comply with the rule as well as an opportunity to work out any implementation issues that come up," McCarthy said. "There is no reason that CFPB regulations should prevent homebuyers from being able to buy and close on a home."
He added, "Owning a home has always been an important part of the American Dream, and government should never stop people from reaching that goal. Representative French Hill’s leadership on this bill means many Americans will be that much closer to achieving their American Dream."
"Without this bill, homebuyers could encounter delays and difficulties when they try to close on their homes. Buying a home is stressful enough, and bureaucratic delays should not add to their stress."—Jeb Hensarling
The Credit Union National Association (CUNA) also expressed their gratitude and support for the bill as credit union navigate the new TRID guidelines.
“This legislation is important for credit unions as they work in good faith to comply with the TRID rule, which became effective October 3,” said Ryan Donovan, CUNA chief advocacy officer. “CUNA and other stakeholders repeatedly asked the CFPB to provide a formal hold-harmless period to ensure the rule has minimal impact on consumers and residential home mortgage closings. We thank the House for their quick action on this important issue and urge the Senate to do the same.”
Rep. French Hill (R-Arkansas), sponsor of the bill, noted that the legislation was brought about to allow for more clarity on the CFPB's TRID rule and that "the stories he and his colleagues have heard regarding efforts to comply, and lingering uncertainty on several aspects of the rule."
In addition, co-sponsor of the bill, Rep. Brad Sherman (D-California) stated, "the bill would help ensure access to mortgage credit during the hold-harmless period because it would allow small lenders to work toward full compliance without penalty."
On Tuesday, the National Association of Federal Credit Unions (NAFCU) Vice President of Legislative Affairs Brad Thaler stated his support for the new legislation in a letter and urged lawmakers to do the same.
Thaler posed the issue of despite both the National Credit Union Association's (NCUA's) and the CFPB's efforts to consider credit unions' good faith efforts toward TRID, there are “unresolved ambiguities” within the regulation.
“We thank Reps. French Hill (R-Arkansas) and Brad Sherman (D-California) for their leadership in introducing H.R. 3192 and shepherding it through the House,” Thaler said. “This legislation will erase all doubt and allow mortgage lenders to comply without fear of enforcement actions. We look forward to continuing to work with Congress to help advance the legislation. ”
Click here to view to view final vote results. Out of the 303 who voted in favor of the bill, 239 were Republicans and 64 were Democrats. All 121 who voted nay were Democrats; 10 representatives (seven Republicans, three Democrats) did not vote.