TRID Improvement Act of 2018

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.

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.

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

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. 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.

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.

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. Speaker, I have no other speakers. I urge a ``yes'' vote on the bill, and I yield back the balance of my time.

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.