House Passes ‘Madden Fix,’ TRID Improvement Bills

The House today approved two bipartisan regulatory reform bills backed by the American Bankers Association as part of its Blueprint for Growth. H.R. 3299 passed with a 245 to 171 vote. Providing a much-needed fix for confusion created by the Madden v. Midland Funding decision, it would codify the “valid-when-made” doctrine. This doctrine ensures that validly made loans remain valid when they are sold or assigned, thus promoting transparency and predictability in the secondary market, but it has come under question in the courts.

The House also voted 271 to 145 to approve H.R. 3978, which would amend the Real Estate Settlement Procedures Act to require the Consumer Financial Protection Bureau to allow the accurate disclosure of title insurance premiums and any potential available discounts to homebuyers as part of the TILA-RESPA integrated disclosures. The CFPB does not currently permit these disclosures, which creates inconsistencies in mortgage documents and creates confusion for consumers.