Pearce: CFPB Misses the Mark Again

Jun 3, 2015 Issues: Financial Services
Pearce: CFPB Misses the Mark Again

FOR IMMEDIATE RELEASE:

Washington, DC – Today, the Consumer Financial Protection Bureau (CFPB) responded to calls for a hold harmless period TILA-RESPA Integrated Disclosure (TRID) rule. Director Cordray announced a policy of ‘sensitivity’ in oversight of good faith actors. U.S. Rep. Steve Pearce issued the following statement in response:

“Buying a home is often the largest purchase a family ever makes. While exciting and transformative for the prosperity of a family, it is also extremely confusing, nerve-racking and complicated at times. This should never be the case. The home buying experience should be as transparent and open as possible. In November 2013, CFPB issued a rule that has the ability to do just that.

“Unfortunately, the rule, which would consolidate the reporting requirements associated with buying a home to make the process and the true cost more transparent, included an implementation date that is unfeasible and will have a profoundly negative impact on our economy if not addressed.

“Since the finalization of the rule, businesses have been working to meet the August 1, 2015 deadline.  Despite a concerted effort to meet the demands of the August implementation date, a billion dollars spent by industry to train staff, procure needed new technology and hire additional employees, will not be enough to meet CFPB’s unobtainable requirements. If not changed, the uncertainty would cause fewer homes to be sold during the peak sales season – the end of summer before school starts.

“Today’s lackluster response from Director Cordray, despite national calls, and repeated bipartisan letters from Congress urging a defined hold harmless period, clearly shows the agency’s disconnect from the American people and the state of our economy.  The nondescript and weak announcement from CFPB creates even greater uncertainty in the housing market, at the worst possible time of the year.

“Sadly, only one path remains to provide the certainty that families and individuals wanting to buy a home deserve -- passage of HR 2213 -- my bipartisan legislation, which I introduced with Democrat U.S. Rep. Brad Sherman.  Strongly supported by industries, trade associations, and businesses alike, our legislation would mandate a 5-month hold harmless period to ensure that those involved in the housing market can continue to serve the millions wanting to buy a home, while also working with CFPB to correct any flaws or unintended consequence in the new consolidation rule.

“I urge my colleagues in the House to join me in supporting HR 2213, and will be working with Chairman Hensarling of the Financial Services Committee and Majority Leader McCarthy to pass this legislation through the House as quickly as possible.”