On Wednesday, October 7th, the House voted to pass the Homebuyers Assistance Act, a bill that would delay enforcement of the new TRID rules that went into effect on October 3. The Homebuyers Assistance Act would shield lenders from private litigation as well as regulatory enforcement actions until February 1, 2016, so long as such lender has made a good faith effort to comply with the rules.
Many in the industry had petitioned the CFPB for regulatory relief, requesting a formal “hold harmless” period as they continued to overhaul their systems and comply with the new requirements. The CFPB declined to implement a formal “hold harmless” period, but indicated that it would take into account good faith efforts to comply in its initial examinations for compliance with the rule.
The House also passed two other noteworthy bipartisan Financial Services Committee bills. The first is the Small Bank Exam Cycle Reform Act which provides regulatory relief for well-managed community financial institutions by providing modified exam cycles. This bill was unanimously passed by the House of Representatives by a vote of 411 to 0. The second is the Disclosure Modernization and Simplification Act, which directs the SEC to simplify its disclosure regime for issuers and investors. This is intended to reduce the burden on smaller issuers by requiring the SEC to revise Regulation S-K and eliminate duplicate, overlapping, outdated, or unnecessary provisions.