The Homebuyers Assistance Act, which provides a four-month grace period for compliance with the TILA-RESPA rule, is still on the back burner, according to a HousingWire report.
The bill was sponsored by Rep. French Hill (R-Ark.) and was hailed by industry groups, but didn’t make it into year-end spending legislation. Hill wanted to add the bill to year-end spending legislation to give it a greater chance of passing, according to HousingWire. The White House had already promised to veto the bill.
“The CFPB has already clearly stated that initial examinations will evaluate good faith efforts by lenders,” the White House stated in a release. “The Administration strongly opposes (the bill), 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.”
Hill said the bill was necessary to provide clarity to mortgage professionals
on how TRID would be enforced.
“CFPB’s lack of interest in rectifying the problem it caused speaks volumes about its true commitment to helping consumers,” Hill stated in a release. “Despite numerous reports of the TRID rule delaying the home-buying process for American families, CFPB is sitting on its hands and has done virtually nothing to help consumers, title companies, lenders, and realtors navigate this new closing regime since.”
A bill that would define the grace period for TRID is still lingering in the House of Representatives despite a series of attempts to pass it.