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05/10/2018

How Congress Can Help Fix Consumer Confusion When Buying a Home

Pass TRID Improvement Act

Under the Consumer Financial Protection Bureau’s (CFPB) TILA-RESPA Integrated Disclosures (TRID) rule, title insurance companies are not permitted to disclose available discounts for title insurance on TRID’s required disclosure forms. This creates inconsistencies in mortgage documents, causes confusion for homebuyers and undermines trust in the homebuying process. The bipartisan TRID Improvement Act of 2018 (H.R. 5078, S.2490) would resolve this issue by allowing the accurate disclosure of title insurance premiums. Having already passed the House unanimously in February 2018, the Senate should pass the TRID Improvement Act either as a standalone measure or as part of a larger regulatory relief package.

  • Example of how title fees are inaccurately disclosed in Missouri under current rule:

Missouri TRID_Page_1

Pass GUIDE Compliance Act

The release of the 1,888-page TRID rule has generated significant confusion. The Bureau has provided only limited guidance in response to questions and has routinely advised that the guidance is not binding.3 To address this issue, Reps. Sean Duffy (R-WI) and Ed Perlmutter (D-CO) introduced H.R. 5534, The “Give Useful Information to Define Effective Compliance Act” or the “GUIDE Compliance Act”. Please help us resolve this issue by supporting House passage and Senate introduction of the bipartisan GUIDE Compliance Act.

Specifically, the GUIDE Act:

  • Mandates that the director issue “guidance” that is necessary or appropriate to carry out the purpose of the laws it is responsible for including facilitating compliance
  • Defines “guidance” to include a range of written issuances from interpretative and legislative rules, to bulletins and frequently asked questions
  • Requires the bureau to publish in the Federal Register within one year of enactment the definitions, criteria, timelines and process for issuing each type of guidance the bureau shall provide, with a final rule required within 18 months of enactment
  • Prohibits liability for reliance in good faith on guidance from the bureau or any predecessor agency that was in effect at the time of such act or omission
  • Requires the bureau to establish a process and timeframes for requests for guidance, including time limits to provide answers in response to requests for guidance
  • Requires the bureau to create a process for amending or revoking guidance, including a process for public notice and comment
  • Requires the bureau to develop guidelines for determining the size of any civil money penalties and publish these guidelines in the Federal Register within 18 months of enactment

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