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New Mortgage Rules in Effect



Not sure how anyone could have missed it, but the CFPB’s TRID rule went into effect last Saturday. With the first post-TRID work week behind us, how did everyone do? Most lenders seemed to agree that the weekend’s rollout of TRID went smoothly, but impacts will not truly be realized for another month or so.

Just days after TRID went into effect, the House of Representatives voted on a bill to formalize the CFPB’s hold harmless grace period, which would allow lenders to work toward full compliance without penalty. With a vote of 303 to 121, the House passed the Homebuyers Assistance Act on Wednesday afternoon, which if signed into law, grants a four-month grace period. Despite the fact that the new regulations are already in effect, the bipartisan legislation would help ensure smooth implementation of TRID rules by providing a temporary legal safe harbor for lenders who make a good-faith effort to comply with the regulations through Feb. 1, 2016.

Before the House vote however, the White House issued a press release on late Tuesday stating the Obama administration would likely veto the Homebuyers Assistance Act if approved by Congress, explaining that the bill would unnecessarily delay consumer protections against crooked lending practices. The CFPB has already clarified that any initial examinations of lenders will evaluate good faith efforts. Essentially, the White House believes that this informal grace period is enough to alleviate lender concerns and does little to acknowledge that the CFPB already gave lenders a two-month extension to implement TRID rules.

The Homebuyers Assistance Act naturally has strong support from the industry, including the National Association of Realtors, Mortgage Bankers Association, and a slew of other trade associations. The bill now goes to the Senate for consideration.


By: Michael Borodinsky

Vice President/Regional Builder Branch Manager | Caliber Home Loans

NMLS #460228







Call Michael: 732-382-2654

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Follow Michael on Twitter: @mikeborodinsky



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