Nov. 2015-Opportunity Knocks

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56 | Th e M Rep o RT O r i g i nat i O n s e r v i c i n g a na ly t i c s s e c O n da r y m a r k e t SECONDARY MARKET the latest SECONDARY MARKET the latest House Passes trid grace Period Bill The homebuyers Assistance Act would offer the mortgage industry protection from enforcement actions if they show "good faith" while adjusting to the new TRID rule, but the White house aims to stop the bill. t he House of Representatives voted in early October 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 enforce- ment actions if they make a good faith effort to comply with the TRID regulation. "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," House Majority Leader Kevin 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." The White House threat- ened to veto the act if it passes congress, saying, "The CFPB has already clearly stated that initial examinations will evaluate good faith efforts by lenders." "The Administration strongly opposes H.R. 3192, as it would unnecessarily delay implemen- tation of important consumer protections designed to eradicate opaque lending practices that contribute to risky mortgages, hurt homeowners by remov- ing 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," the White House wrote. The Credit Union National Association (CUNA) expressed its gratitude and support for the bill as credit unions 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 advo- cacy 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, said the legis- lation was brought about to allow for more clarity on the CFPB's TRID rule and noted "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." The day before the House passed the bill 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 also said despite both the NCUA's and the CFPB's efforts to consider credit unions' good faith efforts toward TRID, there are "unresolved ambigui- ties" within the regulation. "There is no reason that CFpB regulations should prevent homebuyers from being able to buy and close on a home." —Kevin McCarthy, House Majority Leader

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