Rep. Kihuen: H.R. 3978 Provides Clarity in Mortgage Process for Future Homeowners

Press Release

Today, Representative Ruben J. Kihuen applauded the passage of H.R. 3978, the TRID Improvement Act of 2017, a bill he sponsored with Rep. French Hill (R-AR) to increase transparency for homebuyers seeking to understand the costs associated with their mortgage.

"While we have made significant strides since the 2008 financial crisis to protect our economy and prevent another recession, some regulations have made buying a home more burdensome for hardworking Americans. That is why I proudly cosponsored H.R. 3978, which will ease confusion and provide clarity in the mortgage process helping individuals fulfill their dreams of homeownership," said Rep. Kihuen.

In October of 2015 in the wake of the financial recession, the Consumer Financial Protection Bureau (CFPB) modified mortgage disclosure rules and began utilizing the TRID rule also referred to as the "Know Before You Owe" rule. The intent was to simplify the lending disclosure process by eliminating redundancies in forms and increasing transparency for borrowers considering their loan options. Unfortunately, many consumers still do not fully understand the costs associated with purchasing their homes and obtaining title insurance.

Kihuen added, "As a member of the Financial Services Committee I have worked to ensure Nevadans have expanded access to capital, fought to help small businesses thrive, and protected residents from questionable lending practices. Las Vegas is still grappling with the effects of the 2008 financial crisis that caused thousands across our country and the state of Nevada to lose their homes. H.R. 3978 will bring us one step closer to helping Las Vegas recover and making Nevada an easier place to call home."

Background Information:

In November of 2017, the Committee on Financial Services overwhelmingly and with bipartisan support passed H.R. 3978 the TRID Improvement Act of 2017. The bill would modify the language of the Real Estate Settlement Procedures Act of 1974 to ensure consumers better understand the costs associated with purchasing mortgage title insurance. Rep. Kihuen, an original cosponsor of the bill, introduced on October 5, 2017, sits on the powerful Financial Services Committee and is a member of Subcommittees on Terrorism and Illicit Finance and Housing and Insurance.

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