House Committee Passes Bill Exempting Charities from TRID

July 10, 2018

The House Financial Services Committee recently approved a bill that would exempt charitable organizations from using the Loan Estimate and Closing Disclosure required under the TILA-RESPA Integrated Disclosures (TRID) rule.

Introduced by Rep. Barry Loudermilk (R-Ga.), the Building Up Independent Lives and Dreams (BUILD) Act would roll back TRID requirements and allow charities that originate 0% interest rate mortgages to use the Good Faith Estimate, Truth-In-Lending and HUD-1 forms.

The committee passed the bill by a vote of 53-0. The full House was expected to consider the bill on July 10. Rep. Brad Sherman (D-Calif.) has co-sponsored the bill.

"In Georgia, Habitat for Humanity has experienced challenges with some mortgage disclosure regulations under Dodd-Frank," Loudermilk said in a press release. "My bill aims to cut some of the red tape and alleviate unnecessary burdens brought on by Dodd-Frank regulations. This legislation will allow nonprofits, such as Habitat for Humanity, to choose to be exempt from the overly complicated mortgage disclosure requirements of Dodd-Frank, and replace them with a more simplified system."

While TRID applies to most closed-end consumer mortgages, it does not apply to:

  • Home-equity lines of credit
  • Reverse mortgages
  • Mortgages secured by a mobile home or dwelling not attached to land
  • No-interest second mortgage made for down payment assistance, energy efficiency or foreclosure avoidance
  • Loans made by a creditor who makes five or fewer mortgages in a year

Federal law does not require the use of the HUD-1 or the Closing Disclosure in all-cash transactions. While some states have laws requiring the use of a state promulgated form in cash transactions, in general the HUD-1, the Closing Disclosure or any other settlement statement can be used in cash transactions. In addition, federally related mortgage loans generally exclude temporary financing and construction loans.

Contact ALTA at 202-296-3671 or