[Congressional Record Volume 164, Number 35 (Tuesday, February 27, 2018)]
[House]
[Pages H1306-H1308]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
TRID IMPROVEMENT ACT OF 2018
Mr. HILL. Mr. Speaker, I move to suspend the rules and pass the bill
(H.R. 5078) to amend the Real Estate Settlement Procedures Act of 1974
to modify requirements related to mortgage disclosures, and for other
purposes, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 5078
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``TRID Improvement Act of
2018''.
SEC. 2. AMENDMENTS TO MORTGAGE DISCLOSURE REQUIREMENTS.
Section 4(a) of the Real Estate Settlement Procedures Act
of 1974 (12 U.S.C. 2603(a)) is amended--
(1) by striking ``itemize all charges'' and inserting
``itemize all actual charges'';
(2) by striking ``and all charges imposed upon the seller
in connection with the settlement and'' and inserting ``and
the seller in connection with the settlement. Such forms'';
and
(3) by inserting after ``or both.'' the following new
sentence: ``Charges for any title insurance premium disclosed
on such forms shall be equal to the amount charged for each
individual title insurance policy, subject to any discounts
as required by State regulation or the title company rate
filings.''.
SEC. 3. POSITIVE CREDIT REPORTING PERMITTED.
(a) In General.--Section 623 of the Fair Credit Reporting
Act (15 U.S.C. 1681s-2) is amended by adding at the end the
following new subsection:
``(f) Full-File Credit Reporting.--
``(1) In general.--Subject to the limitation in paragraph
(2) and notwithstanding any other provision of law, a person
or the Secretary of Housing and Urban Development may furnish
to a consumer reporting agency information relating to the
performance of a consumer in making payments--
``(A) under a lease agreement with respect to a dwelling,
including such a lease in which the Department of Housing and
Urban Development provides subsidized payments for occupancy
in a dwelling; or
``(B) pursuant to a contract for a utility or
telecommunications service.
``(2) Limitation.--Information about a consumer's usage of
any utility services provided by a utility or
telecommunication firm may be furnished to a consumer
reporting agency only to the extent that such information
relates to payment by the consumer for the services of such
utility or telecommunication service or other terms of the
provision of the services to the consumer, including any
deposit, discount, or conditions for interruption or
termination of the services.
``(3) Payment plan.--An energy utility firm may not report
payment information to a consumer reporting agency with
respect to an outstanding balance of a consumer as late if--
``(A) the energy utility firm and the consumer have entered
into a payment plan (including a deferred payment agreement,
an arrearage management program, or a debt forgiveness
program) with respect to such outstanding balance; and
``(B) the consumer is meeting the obligations of the
payment plan, as determined by the energy utility firm.
``(4) Definitions.--In this subsection, the following
definitions shall apply:
``(A) Energy utility firm.--The term `energy utility firm'
means an entity that provides gas or electric utility
services to the public.
``(B) Utility or telecommunication firm.--The term `utility
or telecommunication firm' means an entity that provides
utility services to the public through pipe, wire, landline,
wireless, cable, or other connected facilities, or radio,
electronic, or similar transmission (including the extension
of such facilities).''.
(b) Limitation on Liability.--Section 623(c) of the
Consumer Credit Protection Act (15 U.S.C. 1681s-2(c)) is
amended--
(1) in paragraph (2), by striking ``or'' at the end;
(2) by redesignating paragraph (3) as paragraph (4); and
(3) by inserting after paragraph (2) the following new
paragraph:
``(3) subsection (f) of this section, including any
regulations issued thereunder; or''.
(c) GAO Study and Report.--Not later than 2 years after the
date of the enactment of this Act, the Comptroller General of
the United States shall submit to Congress a report on the
impact of furnishing information pursuant to subsection (f)
of section 623 of the Fair Credit Reporting Act (15 U.S.C.
1681s-2) (as added by this Act) on consumers.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Arkansas (Mr. Hill) and the gentleman from Minnesota (Mr. Ellison) each
will control 20 minutes.
The Chair recognizes the gentleman from Arkansas.
General Leave
Mr. HILL. Mr. Speaker, I ask unanimous consent that all Members have
5 legislative days to revise and extend their remarks and include
extraneous material on this bill.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Arkansas?
There was no objection.
Mr. HILL. Mr. Speaker, I will yield myself such time as I may
consume.
Mr. Speaker, I rise today in favor of my bill, H.R. 5078, the TRID
Improvement Act. This important package will cut through the red tape
and level the playing field for making sure that regulations are
smarter, fairer, clearer, and more efficient, while, at the same time,
ensure that consumers and investors are protected.
You know, Mr. Speaker, when the CFPB, the Consumer Financial
Protection Bureau, was first initiated as a part of the Dodd-Frank Act,
one of now-Senator Elizabeth Warren's goals was simpler regulation,
that we would streamline regulation, that we would take bulky complex
consumer forms and make them simpler. And the TILA-RESPA, truth-in-
lending form and the real estate settlement form, were examples in
those early days that they were going to make these forms simpler and
easier for consumers.
Well, that is what we are talking about today, Mr. Speaker, for it
did not become simpler and easier. It became costly, complex, and
difficult for consumers.
Today, we are back on the floor on this issue. It is not a new issue
or a new concern because the confusion related to TRID has been
apparent for years.
In November 2013, the CFPB finalized TRID, combining, as I said, the
truth-in-lending form with the real estate settlement procedures form
necessary for consumers in this country to close a home loan to have
that American Dream. The effective date for this final rule was
originally set for mortgage applications received on or after August 1,
2015, but due to the administrative errors of the CFPB, the agency
delayed it until October 3, 2015.
In October, the House of Representatives passed H.R. 3192, the
Homebuyers Assistance Act, which I proudly sponsored, and it passed
with a bipartisan vote in this House of 303-121. It would have provided
a hold-harmless period for those trying to make a good faith effort to
comply with this complex rule.
In April 2016, with complaints pouring in from both homeowners,
homebuyers, consumers, bankers, title companies, the CFPB decided to
reopen the rulemaking on TILA-RESPA and the TRID rule. The CFPB issued
a final rule clarifying and amending certain mortgage disclosure
provisions.
So as you can hear from this long story, Mr. Speaker, this rule is
complex. So we are here today to try to fix a part of it, a small part
of it that will make it easier, better, and more clearer for consumers.
The American Bankers Association stated that if there was one thing
to fix about the current regulatory system, it would be the TILA-RESPA
Integrated Disclosure rule, TRID--not qualified mortgage definitions,
not the Volcker rule, the TRID rule. Mortgage lenders have seen
regulatory change around every aspect of their lending for the last 8
years, and this rule is no exception.
Today, Mr. Speaker, over in the House Small Business Committee, the
GAO testified. They have issued a report about the TILA-RESPA
Integrated Disclosure rule. They told the committee today that this
rule was one of the most expensive facing community banking across the
country, the most burdensome.
So here, the TILA-RESPA rule before our House Small Business
Committee says that we are burdening community banks, and they, in
turn, are not able to do the kind of work that we want, that we expect
for our homebuyers of homes across this country.
CFPB Associate Director David Silberman said the Bureau agreed with
the GAO's recommendation, that it assessed the effectiveness of the
TRID
[[Page H1307]]
guidance and that it intended to ask the public for input on ways to
improve regulatory guidance.
Well, Mr. Speaker, I am glad to have this report from the GAO, but we
have been calling for this for almost 2\1/2\ years that we want this
rule made simpler and more direct and better for our consumers.
H.R. 5078 fixes the title insurance disclosures so that consumers
actually know what their expenses are going to be for title insurance.
And despite our best efforts, the CFPB has been unwilling to fix this
problem on its own; so today, Congress comes to act.
The other aspect of this bill--and I want to thank my good friend
from Minnesota (Mr. Ellison) and my good friend from North Carolina
(Mr. Pittenger) for the second portion of this bill, the Credit Access
and Inclusion Act of 2017.
The Credit Access and Inclusion Act amends the Fair Credit Reporting
Act to allow the reporting of certain positive consumer credit
information for consumer reporting agencies. Specifically, a person or
the Department of Housing and Urban Development might report
information related to a consumer's performance in making payments
either under a lease arrangement for a dwelling or pursuant to a
contract providing utility or telecommunication services. This kind of
positive reporting on a consumer's ability to make their payments on
time will help more families in our country build a credit record.
Mr. Speaker, I reserve the balance of my time.
Mr. ELLISON. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, allow me to just thank the gentleman from the great
State of Arkansas (Mr. Hill) and also Congressman Pittenger, as well as
many other members of the Financial Services Committee on both sides of
the aisle. It is always a pleasure to be able to work together on
things. This is what our constituents expect, and that is what the
Credit Access and Inclusion bill actually represents.
So, Mr. Speaker, if I told you that we could help millions of people
get access to an apartment, lower the cost of a loan, lower the deposit
they may have to put down on a phone or utility deposit, and we could
do all these things without creating a new government program, we could
do it without government mandate, and we could do it with virtually no
new tax dollars, would you take that deal? Because I would. I would
say: Wow, help millions of people be able to afford services that they
need before, lower the cost of loans? Yeah, why wouldn't we do that?
Well, the truth is that we can if we vote ``yes'' on the Credit Access
and Inclusion bill.
I am proud to tell you that this particular piece of legislation,
which is bipartisan, will bring about basic fairness in the credit
scoring system. Credit is currency in our society. It unlocks credit
for access to goods and services. Hardworking Americans need to build
some economic security for themselves and their families.
There are currently about 26 million people, or 1 in 10 Americans,
who do not have a credit record; and there is another 19 million
Americans who do not have enough information to even score. Low-income
individuals and even racial and ethnic minorities are even in worse
shape. About one in four Latinos and African Americans either don't
have a credit score or don't have enough information in the file to get
a score.
{time} 1545
And almost half of the residents of low-income communities do not
have a score of any background.
This bill allows credit rating agencies to use on-time rent, phone,
and utility payments when determining credit scores.
Now, you should know, Mr. Speaker, if people are late with these
lines of information, it can, and often does, show up on their credit
score now. And if people take out loan products which they pay back on
time, that helps those people's credit score now.
But what about the people who pay phone bills and utility bills, and
they pay their bills every month on time? They are not building
anything to help them get in a better credit situation. This bill
allows them to do that.
As a result, more than a third of previously unscorable Americans
will now have access to prime credit and the opportunities that come
with it when we pass this bill.
This bill isn't just about access to credit, though. It is also about
saving hardworking Americans real money, thousands of dollars, on car
loans and their mortgages.
Mr. Speaker, if you are unscorable, you can often get a loan, but the
interest rate is always higher when that happens. So, if people are
scorable and they get a credit score, they will be able to save money
for themselves and put it into their household budget.
The money that used to be going to auto lenders and mortgage brokers
is now going to go into the pockets of consumers so that they can
improve the lives of their family. That sounds like a pretty good day's
work to me.
Mr. Speaker, I reserve the balance of my time.
Mr. HILL. Mr. Speaker, I thank my friend from Minnesota for his work
on this bill and providing the chance to build a credit file for those
who really need it.
Mr. Speaker, I am pleased to yield 2 minutes to the gentleman from
North Carolina (Mr. Pittenger), my friend, who, this week, I know, is
having a touching time with his almost five decades of friendship with
Reverend Billy Graham--we all salute their work together for the
betterment of our world--and who is the vice chairman of the Financial
Services Subcommittee on Terrorism and Illicit Finance.
Mr. PITTENGER. Mr. Speaker, I rise today in great support for
Congressman Hill's bill, the TRID Improvement Act. This bill will lower
consumer costs and lessen regulatory burdens for growing businesses,
which will lead to healthier and well-functioning financial markets.
Mr. Speaker, I thank Congressman Hill for his great work and
leadership on this issue.
I am pleased that this legislation does include the Credit Access and
Inclusion Act, H.R. 435, which I cosponsored with Congressman Ellison,
and which we introduced together.
H.R. 435 is designed to give hardworking Americans better access to
affordable credit by providing more opportunities for them to build
their credit on their own merit without Federal funds or new
bureaucracy. At a time when access to credit is a practical necessity
for economic and social mobility, tens of millions of Americans are
hamstrung because they have little or no credit history.
Currently, on-time utility and rent payments are not reflected in
credit scores. The Credit Access and Inclusion Act amends the Federal
Fair Credit Reporting Act, or FCRA, to allow for nonfinancial service
providers, such as telephone, cable, wireless, electric, and gas
companies, as well as landlords, to report their customers' on-time
payments to credit reporting agencies, or CRAs.
By incorporating these on-time payments, called alternative or
additional data, into credit reports, more Americans can access
affordable and responsible financial products and services, buy homes
and cars, and build wealth, thus strengthening or entire economy.
In total, our bill would enable nearly 100 million Americans to
establish or raise their credit score, all without Federal mandates.
Ultimately, this legislation will give every American the ability to
build a better life.
Mr. Speaker, I thank Congressman Ellison for actively working
together on this very important issue, and I thank Congressman Hill for
his work on the TRID Improvement Act. Please join me in supporting this
commonsense legislation.
Mr. ELLISON. Mr. Speaker, I have no other speakers. I urge a ``yes''
vote on the bill, and I yield back the balance of my time.
Mr. HILL. Mr. Speaker, I again thank Mr. Pittenger and Mr. Ellison
for their work on this measure, and for all of my colleagues on both
sides of the aisle who have brought these bills to the floor and,
particularly, for speaking out for consumers on bills that will help
consumers have more access to credit, whether it is a mortgage and a
speedier, easier, more transparent mortgage closing or the chance to
build credit, with the work from my friend from Minnesota and my friend
from North Carolina.
Mr. Speaker, I have no further requests for time, and I yield back
the balance of my time.
[[Page H1308]]
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Arkansas (Mr. Hill) that the House suspend the rules and
pass the bill, H.R. 5078, as amended.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill, as amended, was passed.
A motion to reconsider was laid on the table.
____________________