As the real estate industry moves forward with the execution of the now-effective TILA-RESPA Integrated Disclosure rule (TRID), a bill intended to help smaller lending, title and escrow companies with compliance, passed the House of Representatives on Wednesday, October 7. The bill "Homebuyers Assistance Act (H.R. 3192), suggested a period in which these parties will not be held liable for inadvertent noncompliance before February 1, 2016. Proposed in July by Congressman Brad Sherman and Congressman French Hill, the bill passed by a vote of 303 to 121.
"When a ship is first launched, it's typical to take it out on a 'shakedown cruise' to make sure that everything is working as it should," Congressman Sherman says in a statement regarding the vote. "These regulations are at least as complicated as the most complex sea-worthy vessel. This bill says there is no retribution for good faith efforts. This is especially important for smaller companies that do not have the resources to quickly comply with new government regulations. This grace period will allow smaller lenders and mortgage companies to better compete in the marketplace and ultimately benefit the consumer."
"Tonight's overwhelming bipartisan and veto-proof vote shows that the House of Representatives recognizes the need for consumers to continue to receive a positive and compliant real estate transaction" says Michelle Korsmo, CFO of the American Land Title Association.
TRID, otherwise known as "Know Before You Owe" was initially set to take effect ton August 1. Due to concerns the transition would coincide with the new school year, the date was extended to October 3.
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