Last week, the House passed H.R. 3192 the “Homebuyers Assistance Act.” On the same day, the Senate read a similar Bill, S. 1711, twice, and referred their Bill to the Committee on Banking, Housing, and Urban Affairs. In short, the Homebuyers Assistance Act is an effort to provide homebuyers a reprieve from perceived closing delays associated with the mortgage industry’s implementation of TRID. As drafted, H.R. 3192 provides lenders that are working in good faith a four-month grace period to comply with the new 1,888-page rule from the CFPB that went into effect Oct. 3.
The White House has already threatened a veto, so there will be several remaining legislative steps before any grace period rule becomes effective.
In the interim, Fannie Mae and Freddie Mac have established their own grace period rules. Earlier this week, Fannie Mae and Freddie Mac sent letters to lenders acknowledging the difficulties involved in TRID implementation. Both agencies stated that they would not conduct routine post-purchase loan file reviews for technical compliance. Like H.R. 3192, the agencies expect lenders to make good faith efforts in implementing and complying with TRID. Neither agency defined an end date to their grace periods.