Lobbying Pays off in TRID Case
The housing finance industry mobilized an enormous lobbying campaign over the month of May seeking relief from the Consumer Financial Protection Bureau’s (CFPB) Truth in Lending Act (TILA), Real Estate Settlement Procedures Act (RESPA) Integrated Disclosures (TRID) rule. The rule becomes effective August 1, 2015, and the industry lobbied for a multitude of concessions including a “hold harmless” period, a delay and a safe harbor. Early on, it did not appear that the CFPB would concede. During remarks at a conference in early May, CFPB Director Richard Cordray remained committed to the agency’s original timeline.
However, the lobbying effort quickly gained momentum, collecting the support of hundreds of members on Congress from the Senate and House of Representatives on both sides of the aisle. Then finally, in response to a letter from nearly every member of the Senate, Director Cordray responded with some leniency. In the letter, the CFPB said it would be sensitive in examining lenders that had made “good-faith efforts to come into compliance with the rules on time,” for the initial period of implementation. Although it’s not an official delay, in this instance, industry advocacy and lobbying clearly paid off.