The House of Representatives could soon consider a bill that would bring several changes to the Consumer Financial Protection Bureau’s “Know Before You Owe mortgage disclosure rule”, also known as the TILA-RESPA Integrated Disclosure rule or TRID.
The new bill is called the “TRID Improvement Act of 2017,” and has yet to be officially introduced into the House, but the bill was discussed on Capitol Hill on Thursday during a meeting of the Financial Institutions and Consumer Credit Subcommittee of the House Financial Services Committee.
The bill is sponsored by Rep. French Hill, R-Arkansas.
According to the Republican arm of the House Financial Services Committee, the TRID Improvement Act of 2017 would amend the Real Estate Settlement Procedures Act and the Truth in Lending Act to expand the time period granted to a creditor to cure a good-faith violation on a loan estimate or closing disclosure from 60 to 210 days.
The bill would also amend RESPA to “allow for the calculation of a simultaneous issue discount when disclosing title insurance premiums.”
Additional details about the bill can be seen in a discussion draft of the bill that was posted Thursday to the House Financial Services Committee’s website. Click here to read the discussion draft in full.
The bill’s proposed changes come just over a month before the CFPB’s finalized updates to TRID rule officially take effect on Oct. 10, 2017.
The Federal Register published the rule last month, marking the 60-day period until the amendments take effect.
The bureau released the updates back in July, answering industry calls asked for greater clarity and certainty on the controversial rule.
For much more on the history of TRID, click here.
During the hearing, the Financial Institutions and Consumer Credit Subcommittee also discussed a number of other bills, including the “Community Institution Mortgage Relief Act of 2017.”
That bill, which is set to be formally introduced by Rep. Claudia Tenney, R-New York, would amends the Truth in Lending Act to direct the Consumer Financial Protection Bureau to “exempt from certain escrow or impound requirements a loan secured by a first lien on a consumer’s principal dwelling if the loan is held by a creditor with assets of $50 billion or less.”
The bill would also require the CFPB to provide certain exemptions to the mortgage loan servicing and escrow account administration requirements of the Real Estate Settlement Procedures Act for servicers of 30,000 or fewer mortgages.
“The legislation discussed in the Subcommittee today will better allow financial companies to serve their customers,” Subcommittee Chairman Rep. Blaine Luetkemeyer, R-Missouri. “From banks and credit unions to attorneys, we’ve seen an impeded ability for businesses across the nation to offer financial services and guidance. In order to preserve consumer choice and financial independence, Congress must tackle regulatory reform and simplify rules. The policies outlined in today’s legislation start to break down those barriers.”