By a bipartisan 303-121 vote, the House last night passed H.R. 3192, which would provide a safe harbor from enforcement actions and private civil actions for lenders making good-faith efforts to implement the new TILA-RESPA integrated disclosures. The safe harbor would extend to Feb. 1.
“Borrowers in all parts of the nation will benefit from this legislation, ensuring that the transition to new rules proceeds without concerns over technical difficulties constraining credit or slowing the settlement process,” said ABA EVP James Ballentine.
Although the bill passed on a bipartisan basis, President Obama has threatened to veto the bill in part because it would “remov[e]the private right of action for violations.” In a memo to House members, ABA rebutted this claim, noting that “to gain the safe harbor for either regulatory or private rights of action, there must be a showing of good faith efforts at compliance.”