Financial Services Committee Advances 23 Bills
Today, Congressman French Hill (AR-02) and other members of the Financial Services Committee advanced 23 bills for future House consideration. Among the measures advanced included H.R. 3978, the TRID Improvement Act and H.R. 4278, the Independence from Credit Policy Act, introduced by Congressman Hill, the Committee’s Majority Whip.
Rep. Hill’s Statement on H.R. 3978, the TRID Improvement Act:
“Consumers deserve to know the costs of their title insurance premiums when they purchase a home. As TRID has become a massive, complex rule, it is hindering financial institutions’ ability to share accurate information to consumers during the mortgage closing process. This legislation seeks to correct this error by ensuring that consumers know the exact cost of their title insurance – not the number reported as one price on a lending estimate and another price on a closing document. I am proud to work with my colleague, Representative Ruben Kihuen (D-NV), to take the first step in undoing this compliance nightmare.”
Rep. Hill’s Statement on H.R. 4278, the Independence from Credit Policy Act:
“After a period of unprecedented monetary expansion, including the extraordinary quantitative easing measures and emergency lending programs, it’s time for the Federal Reserve to return its balance sheet to a normal size as a percent of our economy and normal composition of gold, U.S. Treasury securities, other sovereign debt and central bank obligations. H.R. 4278 is a constructive reform for the Federal Reserve by establishing a bright line between the independent role of the central bank and separate, equally important role of credit policy of the United States as established by the Congress and carried out by the Secretary of the Treasury.”
H.R. 3978, the TRID Improvement Act
In October 2015, the Consumer Financial Protection Bureau (CFPB) implemented the Know Before You Owe (KBYO) or TRID mortgage disclosure rule. This rule integrated a series of mortgage forms under the Truth-In-Lending and Real Estate Settlement Statutes and was designed to assist consumers with better understanding the home closing process. Sadly it has had the opposite effect. In the majority of states, consumers are not receiving an accurate disclosure of their title insurance premiums and are burdened by closing delays and inaccurate information.
In these states, the CFPB does not allow the calculation of a discounted rate known as “simultaneous issue,” which is a rate title insurance companies provide to consumers when they purchase a lenders and owners title insurance policy simultaneously. This rate provides consumers with an effective discount on their owners title insurance policy in order to protect their property rights for as long as they own their home. The CFPB is unwilling to fix this problem on its own, resulting in the need for Congress to act.
H.R. 4278, the Independence from Credit Policy Act
This bill would require a Federal Reserve-Treasury asset swap, where non-Treasury assets transfer from the Federal Reserve’s balance sheet to the Treasury and the Federal Reserve receives an equally valued portfolio of Treasuries in return.
In addition, this bill restricts subsequent open market asset purchases to only direct obligations of the United States.