This bill would direct the Consumer Financial Protection Bureau (CFPB) to require mortgage lenders to disclose discounted rates that are available to consumers for title insurance premiums and to itemize all actual charges imposed on borrowers in the closing documents for mortgages. The CFPB’s TRID rule currently requires disclosures of loan terms and costs to consumers at the beginning and closing of mortgage transactions, and doesn’t allow the calculation of discounts provided when consumers buy a lenders and owners title insurance policy simultaneously. (The TRID rule is also known as the Know Before You Owe rule.)
What is House Bill H.R. 3978?
Impact
Mortgage borrowers; lenders; and the CFPB.
Cost of House Bill H.R. 3978
$500.00 Thousand
The CBO estimates that enacting this bill would cost less than $500,000 for the CFPB to issue the rule implementing the change.
More Information
In-Depth: Sponsoring Rep. French Hill (R-AR) introduced this bill to modify mortgage disclosures to clarify mortgage closing costs for consumers and provide regulatory relief to lenders:
“Consumers deserve to know the costs of their title insurance premiums when they purchase a home. As TRID has become a massive, complex rule, it is hindering financial institutions’ ability to share accurate information to consumers during the mortgage closing process. This legislation seeks to correct this error by ensuring that consumers know the exact cost of their title insurance — not the number reported as one price on a lending estimate and another price on a closing document.”
Some House Democrats expressed opposition to this bill in its committee report:
“[This bill’s] prescriptive changes to the TRID forms would also remove the Consumer Bureau’s ability to amend the regulation. This could cause unintended consequences greater than the issues that the legislation seeks to address, since the Consumer Bureau would no longer have the authority to quickly adjust TRID regulations if a problem with H.R. 3978 arises.”
This legislation passed the House Financial Services Committee on a 53-5 vote and has the support of 18 bipartisan cosponsors, including 13 Republicans and five Democrats.
Media:
Summary by Eric Revell
(Photo Credit: BrianAJackson / iStock)AKA
TRID Improvement Act of 2017
Official Title
To amend the Real Estate Settlement Procedures Act of 1974 to modify requirements related to mortgage disclosures, and for other purposes.
bill Progress
- Not enactedThe President has not signed this bill
- The senate has not voted
- senate Committees
Committee on Banking, Housing, and Urban Affairs - The house Passed February 14th, 2018Roll Call Vote 271 Yea / 145 Nay
- house Committees
Committee on Financial ServicesConsumer Protection and Financial InstitutionsIntroducedOctober 5th, 2017
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Economy
