House Passes Hill’s Legislation to Improve Mortgage Disclosures
Washington, February 14, 2018
Tags: Financial Services
Today, Congressman French Hill (AR-02) issued the following statement after the House passed his bill, the TRID Improvement Act, by a vote of 271-145:
“For an Arkansas family, purchasing a home is one of the most important events, and the last things they want are hidden costs and fees. Arkansas families can breathe a little easier tonight because my bill that passed the House eases one part of the complex maze of regulations created by Dodd-Frank regulations, ensuring that homebuyers are able to get from financial institutions to share accurate information about the cost of title insurance during the mortgage closing process. I encourage my colleagues in the Senate to join the House in passing this common sense bill.”
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The TRID (TILA-RESPA Integrated Disclosure) Improvement Act, H.R. 3978, modifies requirements related to mortgage disclosures and offers clarification to consumers and regulatory relief to financial institutions.
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 and was designed to assist consumers with better understanding the home closing process, but it has had the opposite effect. In the majority of states, consumers are not receiving an accurate disclosure of their title insurance premiums.
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, calling on Congress to act.