In a letter to Consumer Financial Protection Bureau Director (CFPB) Richard Cordray, U.S. Reps. Blaine Luetkemeyer (R-Mo.) and Randy Neugebauer (R-Texas) pressed the bureau to provide a restrained enforcement period for the TILA-RESPA Integrated Disclosure rule that takes effect Aug. 1.
The congressmen said that the restrained period should be extended through the end of the year, in large part because of the volume of home closings conducted in August.
“August is one of the busiest months for home closings, as many homebuyers look to move into their new homes before the start of the school year,” their letter stated.
The letter said that 10 of the 25 busiest days for existing home sale closings in 2014 came in or after August, and Aug. 29 was the third-busiest day of the year for closings. Meanwhile, 19 of the slowest closing days in 2014 came in January or February.
“We strongly encourage you to make the Aug. 1, 2015, to Dec. 31, 2015, timeframe a ‘hold harmless’ period of restrained enforcement and liability,” the letter said. “This would allow all parties to better understand the changes associated with TRID and help ensure consumer confidence and stability in the nation’s housing market. Furthermore, a period with protection against liability would allow the CFPB to evaluate any unforeseen issues stemming from TRID.”
The letter recalled the restrained enforcement policy instituted by the Department of Housing and Urban Development in 2010, the last time the disclosure forms changed, and said that the bureau has not seemed to respond to concerns expressed by the House Financial Services Committee – which Luetkemeyer and Neugebauer both sit on – about the Aug. 1 deadline.
“You have heard from Financial Services Committee members in the past, and we appreciate that the CFPB has allowed for consumer and industry input; yet we have little information about steps taken by the CFPB to ensure a seamless transition to TRID,” the letter said.
The letter ended by asking Cordray and the CFPB to respond by April 17.