It is critical that this rule is implemented smoothly so that it does not end up hurting creditworthy Americans that want to own a home. Given the scope and complexity of these new rules, the implementation of this regulation will impose high costs on all lenders and consumers.
According to an ABA survey, many bankers do not yet know when their vendors will have systems in place to handle the new process. And without time to test systems, or an opportunity to comply early, Lowman said there will be numerous kinks to work out after Aug. 1. She said:
Should anything go awry, then the settlement will have to be delayed. A delay in settlement could be a huge imposition to a buyer, especially one who may be selling another house contingent on settlement or who is planning a move.
Lowman voiced ABA’s support for H.R. 2213, which would provide a reasonable grace period during which lenders may be held harmless for TRID implementation errors made in a good-faith effort to comply and urged the CFPB to provide one on its own. She added:
Come August, lenders should be ensuring they are providing the best quality care for the consumer during the industry’s busiest season. They should not be concerned with the unnecessary burden of properly functioning software systems which is why a delay option seems to be the best solution for all parties involved.
Read the testimony.
View the survey results.