WASHINGTON, D.C. – June 3, 2015 – (RealEstateRama) — U.S. Rep. Blaine Luetkemeyer (R-MO), Chairman of the Housing and Insurance Subcommittee, and U.S. Rep. Randy Neugebauer (R-TX), Chairman of the Financial Institutions and Consumer Credit Subcommittee, today responded to the CFPB’s announcement letter regarding the Bureau’s TILA-RESPA Integrated Disclosure rule (TRID). In a March letter to Director Cordray, the congressmen encouraged the Bureau to implement a period of restrained enforcement to help ensure consumer confidence and stability in the nation’s housing market.
“TILA-RESPA integration is a significant event for our nation’s mortgage and housing markets. We appreciate Director Cordray taking a first step in indicating a regulatory “sensitivity” to good faith efforts to meet requirements of the new disclosure rules. However, we are very disappointed the Bureau has failed to provide necessary market certainty with a formal hold harmless period – especially given the massive bipartisan Congressional interest. Nearly 300 Senators and House Members have written to Director Cordray asking for a formalized hold harmless period. Anything short of that is unacceptable. That request was reiterated during a bipartisan meeting with Director Cordray yesterday afternoon. Today’s announcement falls far short of our expectations and runs contrary to the impression with which Members were left yesterday. We hope the Bureau and all banking regulators will stand by their commitment to work with consumers and market participants to ensure a seamless implementation of the rules. The Bureau should expect vigorous oversight and attention from members of Congress in how its supervision efforts play out after August 1st’s effective date. To that end, we will be sending letters to all major financial trade associations asking that they keep Congress informed of any and all disciplinary actions taken by the CFPB and other financial regulators on TRID implementation,” said Reps. Luetkemeyer and Neugebauer.