U.S. Rep. French Hill’s (R-AR) legislation to better serve American homebuyers and offer regulatory relief to financial institutions passed the House of Representatives on Feb. 14.
The TRID (TILA-RESPA Integrated Disclosure) Improvement Act of 2017, H.R. 3978, modifies disclosure requirements that apply to mortgage loan transactions, according to a congressional record summary of the bill. It passed the House in a 271-145 vote.
“For an Arkansas family, purchasing a home is one of the most important events, and the last things they want are hidden costs and fees,” said Rep. Hill. “Arkansas families can breathe a little easier tonight because my bill that passed the House eases one part of the complex maze of regulations created by Dodd-Frank regulations.”
Congressman Hill, a former community banker, introduced the bipartisan H.R. 3978 on Oct. 5, 2017, with U.S. Rep. Ruben Kihuen (D-NV). Among the bill’s 18 cosponsors are U.S. Reps. Andy Barr (R-KY), Steve Stivers (R-OH), and Tom Emmer (R-MN).
The Dodd-Frank Wall Street Reform and Consumer Protection Act, enacted in 2010, called on the Consumer Financial Protection Bureau (CFPB) to integrate mortgage loan disclosures required by the Truth in Lending Act of 1968 and the Real Estate Settlement Procedures Act of 1974.
The CFPB established the Know Before You Owe mortgage disclosure rule in October 2015 to integrate a series of mortgage forms. The Know Before You Owe rule is also known as the TRID (TILA-RESPA Integrated Disclosure) mortgage disclosure rule with TRID being comprised of the acronyms of TILA for the Truth-in-Lending Act and RESPA for the Real Estate Settlement Procedures Act. The rule was intended to help consumers understand the process of closing on a home purchase, according to a summary from Hill’s office, but it had the opposite effect and consumers in most states weren’t getting an accurate disclosure of their title insurance premiums.
Mortgage bankers and community bankers in Hill’s district had spoken to him about the confusing rule “countless times,” Hill said in House floor remarks before the bill’s passage. The lawmaker added that members of Congress from all 50 states also listened to some of the same stakeholders at home voice their concerns about “trying to provide an accurate, fast closing” for Americans doing “the most important thing we do as a family, and that is decide to buy a home.”
Specifically, among several provisions, the bill would clarify for homeowners and financial institutions that “the disclosed charges for any title insurance premium shall be equal to the amount charged for each individual title insurance policy, subject to any discounts as required by either state regulation or the title company rate filings,” according to the congressional record summary.
The measure now heads to the Senate for its consideration.