As we go through the first full week of TRID, many lenders are still struggling with software not ready to handle the new requirements, ambiguities in the regulation and lack of answers or clarifications from the Consumer Financial Protection Bureau. Despite the CFPB and FDIC’s announcements regarding working with lenders during examinations as long as the lender is putting in a good faith effort to comply with the new rules, it is essential that each creditor understand that regulatory relief from penalties that your examiner may impose does not diminish the civil liability exposure violations could create.
To avoid this civil liability exposure, the Homebuyer’s Assistance Act (H.R. 3192) was proposed and introduced into Congress. The Act would prohibit enforcement against any person of integrated disclosure requirements for mortgage loan transactions under the Real Estate Settlement Procedures Act of 1974, the Truth in Lending Act, and regulations issued thereunder until February 1, 2016. The Act would also protect creditors from civil liability as it proposes that no suit may be filed against any person for a violation of such requirements occurring before February 1, 2016, as long as the person has made a good faith effort to comply with the TRID rules.
The bill is still pending, but some progress has been made. Last week, the House Majority Leader indicated that this bill may be considered this week. TriComply is watching this closely. In the meantime, head over to your Congressman and Senator website pages and urge them to pass the Homebuyer’s Assistance Act as quickly as possible!