Press Releases

Today, the House Financial Services Committee passed H.R. 3192, the Homebuyers Assistance Act, which would provide a temporary legal safe harbor for those making a good-faith effort to comply with the Consumer Financial Protection Bureau’s (CFPB) new mortgage disclosure rule—the TILA-RESPA Integrated Disclosure (TRID) rule—which is set to take effect on October 3, 2015.

On November 20, 2013, the CFPB finalized TRID, which combined certain disclosures that consumers receive in applying for and closing on a residential mortgage loan, including disclosures required under the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA). The effective date for the final rule was originally set for mortgage applications received on or after August 1, 2015, but due to “administrative errors,” the CFPB delayed the effective date until October 3, 2015.

The settlement process is an integral piece of a real estate transition, so any glitch or delay in the process affects buyers and sellers and all parts of the real estate industry, including realtors, bankers, homebuilders, and title companies. Almost 300 Senators and House Members wrote the CFPB to request a formal hold-harmless period.

H.R. 3192 does not delay implementation of the TRID rule, but rather, provides a temporary safe harbor to those who are making a good faith effort to comply until February 1, 2016.

Congressman French Hill (AR-2) released the following statement after the bill passed the Committee by a bipartisan vote of 45-13:

“While I appreciate the CFPB’s willingness to be sensitive to real estate and mortgage industry concerns regarding TRID implementation, a formal hold-harmless period is necessary to hold them to their word and guarantee no punishment for good-faith compliance efforts. Any substantial change presents compliance challenges, and there will not be an opportunity to test new systems and forms necessary to implement this very complex rule. This temporary grace period will allow the industry to work with the CFPB to help ensure a smooth transition and prevent costly market disruptions and delays for consumers. I thank my colleagues, Congressmen Pearce and Sherman, for their work on this commonsense bill to ensure real estate closings are not disrupted.” - Congressman French Hill

First Security Bancorp, Arkansas Realtors Association, Arkansas Bankers Association, Mortgage Bankers Association, and American Land Title Association (ALTA), released the following statements in support of H.R. 3192:

“We support the legislation to provide absolute confidence to the housing industry as they implement a most complex rule. While the Bureau has conveyed a commitment to not aggressively enforce, this would provide that clarity to make certain that lending continues while a very complex set of new disclosures gets implemented.” -  David H. Stevens, President and Chief Executive Office, Mortgage Bankers Association

“ALTA and its 5,700 member companies applaud Reps. French Hill and Brad Sherman for introducing the Homeowners Assistance Act, H.R. 3192. This bipartisan legislation provides a reasonable hold-harmless period for enforcement for those in our industry making a good faith effort to comply with the Consumer Financial Protection Bureau’s (CFPB) TILA-RESPA Integrated Disclosures (TRID) rule. We urge the House of Representatives to pass the Homebuyers Assistance Act immediately to prevent unnecessary, frustrating and sometimes costly delays for consumers and to ensure our industry continues to meet the needs of our customers.” - Michelle Korsmo, Chief Executive Office, ALTA

“Realtors are delighted that Congressman Hill is sponsoring the Homebuyers Assistance Act.  The hold-harmless period helps ensure consumers' real estate purchases won't be disrupted after the October 3rd effective date as it protects settlement service providers, mortgage lenders and other service providers from unwarranted exposure.  And that is good for buyers, sellers and Arkansas.” - Wally Loveless, Legislative Committee Member, Arkansas Realtors Association 

“Congressman Hill’s bill will give our banks the ability to continue to serve our customers and our communities, and to  properly set up the  new systems without  having to greatly  lengthen the already too long  required paperwork processes. This bill will help our communities continue to recover and expand. We thank Congressman Hill for his leadership and understanding  of community banking.” - Bill Holmes, President & CEO, Arkansas Bankers Association

“Due to the complexity of the changes and with the increased time, it is becoming very apparent that our software provider is struggling to say the least. I am not confident that we can make all of the required changes by October 3.” – James K. Taylor Sr., Vice President, First Security Bancorp

Groups in Support of H.R. 3192

• American Bankers Association
• American Bankers Insurance Association
• American Escrow Association
• American Land Title Association
• Appraisal Institute
• Community Home Lenders Association
• Community Mortgage Lenders of America
• Consumer Bankers Association
• Consumer Mortgage Coalition
• Credit Union National Association
• Housing Policy Council of the Financial Services Roundtable
• Independent Community Bankers of America
• Mortgage Bankers Association
• National Association of Federal Credit Unions
• National Association of Home Builders
• National Association of Mortgage Brokers
• National Association of Realtors
• Real Estate Services Providers Council, Inc.
• The Appraisal Firm Coalition
• U.S. Chamber of Commerce

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