Barry's BUILD Act to Help Charities Clears First Hurdle

Press Release

The House Financial Services Committee approved a bill that would roll back the requirements of the TILA-RESPA integrated disclosures rule for charities like Habitat for Humanity and instead allow them to use the old good faith estimate and HUD-1 mortgage forms.

Rep. Barry Loudermilk, R-Ga., introduced the Building Up Independent Lives and Dreams, or BUILD, Act on May 24. It would allow charitable organizations that originate 0% interest rate mortgages to use the good faith estimate, the truth-in-lending and the HUD-1 settlement statement rather than the Loan Estimate and Closing Disclosure forms created by the Dodd-Frank Act.

The bill cleared the House Financial Services Committee on a 53-to-0 vote on May 14 and now goes before the lower chamber for further action.

"In Georgia, Habitat for Humanity has experienced challenges with some mortgage disclosure regulations under Dodd-Frank," Loudermilk said in a press release.

"My bill aims to cut some of the red tape and alleviate unnecessary burdens brought on by Dodd-Frank regulations. This legislation will allow nonprofits, such as Habitat for Humanity, to choose to be exempt from the overly complicated mortgage disclosure requirements of Dodd-Frank, and replace them with a more simplified system."

The bill has only one co-sponsor, Rep. Brad Sherman, D-Calif.

Even with TRID, the GFE, TIL and HUD-1 are still used for reverse mortgages, home equity lines of credit, mobile homes not attached to real property and by those who make five or fewer mortgages in a year.

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