"Without the protections from civil damages contained in H.R. 3192 you can be certain that mortgage professional
s 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,” Rocke Andrews, President-Elect of NAMB, said in a release. “This will only make access to credit much more difficult for homebuyers."
The goal of the bill is to provide for a temporary safe harbor from the enforcement of integrated disclosure requirements for mortgage loan transactions under the Real Estate Settlement Procedures Act of 1974 and the Truth in Lending Act, and for other purposes, according to congressional documents.
The bill was introduced to the house on July 23 and was placed on the Union Calendar on October 1.
Andrews told Mortgage Professional America that NAMB is working with 20 housing groups to get the bill passed. According to Andrews, the bill will be voted on today.
It would provide a hold harmless period through the end of January, 2016 – something many in the industry have recently called for.
"The mortgage industry continues to brace itself for potential disruption to consumers' homebuying experience due to the complexity with the new TRID rule," Andrews said. "It is extremely important for industry stakeholders to receive the much needed hold harmless protections as proposed by HR 3192."
And although the dust has yet to settle on the TRID rule change, one industry player believes the lack of a hold harmless period could lead to conservative originating and restricted credit for clients.
“I definitely see the possibility of that happening,” Mike Maloney, a loan originator with Homestead Funding Corp., told Mortgage Professional America.
NAMB has once again renewed its call for congress to pass H.R. 3192, arguing it will give players time to adapt to the TRID rule change – and benefit clients as well.