ALTA Praises Sens. Scott and Donnelly for Introducing Bipartisan TRID Hold-Harmless Bill
July 16, 2015
ALTA thanked U.S. Sens. Tim Scott (R-S.C.) and Joe Donnelly (D-Ind.) for introducing S. 1711, a companion bill to H.R. 2213, which provides for limited liability for those who in good faith attempt to comply with the new TILA-RESPA Integrated Disclosure (TRID) requirements through 2015.
“There will be a learning curve as industry professionals adjust to the new requirements,” said Michelle Korsmo, ALTA’s chief executive officer. “Senators Scott and Donnelly understand the real world implications and the efforts of those working to implement such a complex regulation and their bill will make a big difference for consumers and ALTA members.”
Sen. Scott believes that “legislation—as opposed to reliance on promises of bureaucratic ‘sensitivity’ after the effective date or Congressional Review Act hiccups—provides the highest degree of certainty ….”
In a June 3 letter to members of Congress and on a blog, CFPB Director Richard Cordray said the bureau would be “sensitive to the progress made by those entities that have squarely focused on making good-faith efforts to come into compliance with the rule on time.”
“Although industry has had 21 months to prepare for the new TRID requirements, the rule prohibits the use of the new forms until after the implementation date,” Korsmo added. “That will be the first opportunity to test the disclosures in real-world real estate transactions and scenarios will arise that have not yet been contemplated. Industry professionals will need to determine how to resolve these unknown situations while complying with the 1,888-page TRID regulation.”
ALTA has urged Congress to pass legislation that would provide a hold-harmless period following TRID implementation. ALTA also continues to ask the CFPB to announce a hold-harmless period to help provide clarity on how to comply.
“Without certainty, service providers are likely to close fewer transactions to ensure compliance with TRID, which will delay homeownership for consumers around the country,” Korsmo said. “ALTA members support S. 1711, and its companion bill H.R. 2213 in the House, for creating a definitive hold-harmless period to ensure industry has the time needed to properly implement this new regulation while delivering the service and closing experience that homebuyers deserve.”
As of July 16, S. 1711 had 10 sponsors.
Contact ALTA at 202-296-3671 or [email protected].