Sen. Tim Scott (R-S.C.), joined by 10 bipartisan co-sponsors, this week introduced a bill that would provide lenders with a temporary safe harbor from enforcement of the TILA-RESPA integrated disclosures, expected to be implemented starting Oct. 3. The ABA-backed bill, S. 1711, is a companion to H.R. 2213, which has 38 bipartisan co-sponsors.
ABA supports the bipartisan bill, which would protect lenders from private lawsuits and regulatory enforcement actions through Dec. 31, 2015, if they are making good-faith efforts to comply with the rule. Noting the major challenges of implementing the new disclosures — and the lack of opportunity to comply in advance of the implementation date — ABA has urged the CFPB to offer a “grace period” to allow the industry to ensure implementation goes as smoothly as possible.
