Let's Delay Implementation of the New CFBP Rule

Floor Speech

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Mr. COSTELLO of Pennsylvania. Mr. Speaker, I rise today relating to the new CFPB rule combining the Real Estate Settlement Procedures Act and Truth in Lending Act disclosure that is scheduled to take effect on August 1.

On behalf of home buyers across this country, the real estate industry has requested a grace period or hold harmless period for 90 days. To date, the CFPB will only commit to saying they will have relaxed enforcement for a period similar to that of the qualified mortgage/ability to repay rule.

Now, leaving aside whether this rule will provide more clarity or more confusion to the real estate purchaser, leaving aside whether it will provide more protection to buyers or be more problematic for them to close on a real estate transaction, I want to focus on the August 1 deadline.

I spent 10 years in the real estate industry working with real estate agents, banks, mortgage professionals, title insurance agents, and it is well known that June, July, and August tend to be the most active months for real estate transactions. Changing disclosure requirements in the middle of the busiest part of the calendar year for real estate deals causes difficulty for those involved in conducting settlements. And changing them without the ability for professionals to test their systems and procedures doesn't make much sense, either.

It is also unfair to consumers in that you are compelling their retained professionals to receive the training during the busiest months, implement new procedures, and account for unanticipated disruptions. Any hiccup along the way is actually to the detriment of the consumer.

Let's make the rule effective in January or February of 2016, which are historically the slowest months of the year, and when it is most fair to real estate consumers.

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