Vote on NASCUS-supported TRID ‘safe harbor’
OCT. 6, 2015 -- Legislation that would that would delay the implementation of the CFPB’s new mortgage rule, and create a safe harbor protecting credit unions from legal recourse through Feb. 1, 2016, is expected to be voted on by the full House of Representatives as early as Wednesday, Oct. 7.
NASCUS strongly supports a TRID “safe harbor,” as outlined in the association’s comment letter to the consumer agency this summer. In the letter, NASCUS urged the agency to adopt a “hold harmless period” (that is, a period in which a credit union would be protected from legal recourse), which would recognize “the magnitude of the operational changes that will accompany this rule, and give financial institutions a good-faith opportunity to manage their risk without disrupting their service to members.”
The bill to be considered Wednesday, HR 3192 (the Homebuyers Assistance Act) concerns the CFPB’s Truth in Lending Act-Real Estate Settlement Procedures Act integrated disclosure (TRID) rule, which became effective Oct. 3. The legislation has the strong support of credit unions and bank trade groups. It is sponsored by Reps. French Hill (R-Ark.) and Brad Sherman (D-Calif.).