WASHINGTON—Both NAFCU and CUNA applauded the CFPB’s announcement that it will initiate rulemaking in late July to address many of the ongoing issues and concerns over the implementation of the TILA/RESPA Integrated Disclosures (TRID) or Know Before You Owe rules.
The trade associations have advocated for the Bureau to provide greater clarification on the rules. Cordray responded via a letter to the trades.
“We appreciate Director (Richard) Cordray’s consideration of our concerns regarding the need for greater clarity on the TRID rules,” said NAFCU Director of Regulatory
Compliance Bruyere. “This is a welcome first step and there is still a lot of work to be done in order to truly address the ambiguities in the TRID rule. We look forward to the bureau’s continuing efforts to facilitate the compliance process.”
NAFCU, CUNA, the Mortgage Bankers Association and five other trades wrote CFPB in January to seek clarification on the rule.
Cordray responded that the bureau hopes to issue the NPRM in late July.
“We recognize that the implementation of the Know Before You Owe rule poses many operational challenges. We also recognize that implementation is particularly challenging because of the diversity of participants, from small to large financial institutions,” Cordray wrote.
“We do recognize that incorporating some of the Bureau’s existing informal guidance, whether provided through webinar, compliance guide, or otherwise, into the regulation text and commentary would be helpful,” he continued. “We also believe that there are places in the regulation text and commentary where adjustments would be useful for greater certainty and clarity.”
CUNA Chief Advocacy Officer Ryan Donovan, stated that the trade association is pleased to see that the Bureau is “now acknowledging that their regulations impose a significant burden on credit unions and their members, and that compliance is often immensely more difficult than the bureau understands. The CFPB has been reluctant to issue written guidance or amend its rule wanting the industry to attempt to ‘work out’ the issues despite outcries from CUNA and the industry. We will continue to work with the CFPB as it moves forward with these changes to ensure that they bring proper relief for credit unions across the country.”
CUNA has engaged in ongoing discussions with the CFPB since the rule became effective on October 3, 2015, and most recently outlined numerous concerns in a letter to Reps. Blaine Luetkemeyer (R-MO) and Randy Neugebauer (R-TX). In the letter, CUNA recommended numerous areas that need clarification by the CFPB to both ensure that ability of a credit union to comply with the complex rule, clearly allocate liability and responsibility for the various roles in the closing process, and ensure a properly functioning secondary market.
NAFCU said it will continue to monitor the issue. NAFCU’s Regulatory Compliance team has compiled a set of resources on CFPB’s mortgage rules that are available here.