On May 14, 2015, the House Financial Services Committee’s Subcommittee on Housing and Insurance will hold a hearing on “TILA-RESPA Integrated Disclosure: Examining the Costs and Benefits of Changes to the Real Estate Settlement Process.”
While the witnesses have not yet been announced, it is likely that the hearing will feature a renewed call from subcommittee members for the CFPB to provide a grace period from enforcement of the TILA-RESPA integrated disclosure (TRID) rule which is set to take effect on August 1, 2015. In March 2015, Congressman Blaine Luetkemeyer, who chairs the subcommittee, wrote to Director Cordray to urge the CFPB to allow a “hold harmless” period “of restrained enforcement and liability” until January 1, 2016. In addition, another subcommittee member, Congressman Steve Pearce, is a cosponsor of a bill recently introduced in the House (H.R. 2213) that would provide lenders with a temporary safe harbor from enforcement of the TRID rule until January 1, 2016.
It was recently revealed that Director Cordray sent a letter dated April 22, 2015 responding to Mr. Luetkemeyer’s March letter. While Director Cordray did not rule out the possibility that the CFPB will initially take a lenient approach to enforcement, the letter makes no commitment to leniency. In the letter, Director Cordray indicated that the CFPB considered the implications of various effective dates on industry implementation, including a January 1, 2016 effective date. He stated that the CFPB “received extensive feedback that August was a comparatively better choice, given other operational imperatives for industry associated with the beginning of the calendar year and the traditionally slow pace of new applications in August.” Director Cordray concluded the letter by commenting that the CFPB “plans to continue its active engagement in supporting industry and consumers throughout the implementation period of the [TRID] Rule.”