The good faith period that the CFPB and other regulatory agencies have provided does not affect whether lenders or investors have civil or assignee liability. It only affects administrative liability, so potential for violations that are cited by the regulatory agency. Civil liability is completely unaffected by these administrative good faith periods because civil liability basically accrues from the statute and regulation themselves, and those are in effect in the CFR, and so regardless of what the CFPB says about taking into account good faith, a borrower can still sue under the statute or regulations that’s on the books.
Actually, I think I should add, that’s why it would be helpful, and why there was a push in Congress to have a hold harmless period added to TILA for the implementation of TRID. It didn’t get anywhere in Congress, but perhaps, you know, there could be some movement on that later on, or perhaps there could be some limit to the rule to provide such a period in the regulation itself.
These are all things that I think a lot of folks in the industry are thinking about. But for now, there is no protection from civil liability for good faith efforts.
Answered By: Richard Horn