“A hold-harmless period helps ensure consumers’ real estate closings will not be disrupted after this complicated regulation’s Oct. 3 effective date,” the industry groups wrote in a letter to the CFPB, according to HousingWire. “We note that 250 Members of the House and 41 Senators have written to CFPB urging the action that this legislation would mandate.”
The CFPB announced the finalized effective date of October 3 for TILA-RESPA Integrated Disclosure rules last week.
“The Bureau believes that moving the effective date may benefit both the industry and consumers with a smoother transition to the new rule,” the CFPB said in a press release at the time. “The Bureau further believes that scheduling the effective date on a Saturday may facilitate implementation by giving the industry time over the weekend to launch new systems configurations and to test systems.”
And while the regulator has agreed to a grace period, a formalized time period has not yet been specified.
“We appreciate that the Bureau indicated it will be sensitive to the progress made by those entities that make good-faith efforts to comply,” the letter reads. “At the same time, industry needs more certainty that their good-faith efforts to comply while still meeting consumers’ expectations does not expose lenders and settlement service providers to litigation during the initial period after the regulation becomes effective.”
Over 20 real estate industry trade groups announced Monday their support of HR 3192, the Homebuyer Assistance Act, which will provide a “hold-harmless” grace period for TRID enforcement for those who make efforts to comply.