Hill-Sherman Homebuyers Assistance Act Passes the House
Washington DC – Today, The Homebuyers Assistance Act, a bill introduced by Congressman Brad Sherman (D-CA) and Congressman French Hill (R-AR), passed the House of Representatives by a vote of 303 to 121. Sherman, a senior member of the Financial Services Committee, designed the bill to assist smaller title and escrow companies as well as small lenders in complying with the a complicated new regulation issued by the Consumer Financial Protection Bureau (CFPB).
The CFPB now requires new disclosure forms for every home sale occurring after October 3, 2015. Smaller companies have said that they may be out of business if they were required to comply with all 1,888 pages of this regulation immediately. This bill will make sure that homebuyers will have a wide variety of lenders, title and escrow companies to rely on.
“These new forms and regulations are complicated,” said Congressman Sherman. “Smaller lenders and title companies are complying in good faith with a 1,888 page regulation that is only now being tested in real life home closings. The Hill-Sherman bill tells these smaller lenders, title and escrow companies to implement the new forms immediately. However, if they act in good faith but make unintentional mistakes, they will not be subject to retribution for those mistakes made prior to February 1, 2016.
“When a ship is first launched, it's typical to take it out on a ‘shakedown cruise’ to make sure that everything is working as it should,” Sherman added. “These regulations are at least as complicated as the most complex sea-worthy vessel. This bill says there is no retribution for good faith efforts. This is especially important for smaller companies that do not have the resources to quickly comply with new government regulations. This grace period will allow smaller lenders and mortgage companies to better compete in the market place and will ultimately benefit the consumer.”