[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.

                          ____________________