WASHINGTON—After strong pushback from credit unions and their trade groups, the CFPB has announced it will consider “good faith efforts” by credit unions to comply with the new integrated mortgage disclosures rule set to take effect Aug.1 under the Truth in Lending Act and Real Estate Settlement Procedures Act (TILA/RESPA).
Both NAFCU and CUNA applauded the news from CFPB Director Richard Cordray, which was shared in a letter to lawmakers.
“We appreciate Director Cordray’s consideration and leadership in recognizing the value of ‘good faith efforts’ by credit unions on this complex new rule,” said NAFCU President and CEO Dan Berger in a release. “We also appreciate the bipartisan support of all the members of Congress who wrote Director Cordray and met with him to urge a restrained examination period. A grace period will not only ensure a smoother implementation of the new TILA/RESPA mortgage disclosure forms, but it will also allow those who make a good-faith effort to comply with the regulation to do so without the fear of potential regulatory enforcement actions.”
Berger noted that NAFCU lobbied Congress and met on numerous occasions with Cordray and his staff to discuss the impact of the TILA/RESPA regulations in order to express credit unions’ compliance concerns. In March, NAFCU also joined other financial services trade groups, including CUNA, in seeking consideration of good-faith efforts that would allow compliance without the fear of potential enforcement actions or lawsuits.
“I thank CFPB Director Cordray for listening to the requests of CUNA, Congress and others in our call for a safe harbor period through the end of the year for the enforcement of the TRID rule,” said CUNA President and CEO Jim Nussle in a release. “CUNA supports the CFPB’s goal for transparency with the new disclosures helping consumers better understand mortgage terms, and now credit unions will be allowed the time they need to figure out the day-to-day aspects of complying with the rule without worrying about enforcement.”
NAFCU noted that Cordray’s announcement runs parallel with NCUA Chairman Debbie Matz’s efforts on the issue. “She was the first regulator to acknowledge the extraordinary value of recognizing ‘good faith efforts’ by credit unions,” the trade association stated.