WASHINGTON—While CUNA is asking the CFPB for answers about a discrepancy the trade association said it has spotted regarding TILA-RESPA rules, NAFCU is taking a different stance.
Last week CUNA President and CEO Jim Nussle sent a letter to Bureau Director Richard Cordray saying CUNA found a “discrepancy” between the CFPB’s previous TILA-RESPA Small Entity Compliance Guide and supplementary information to the TRID rule compared with text in the latest Small Entity Compliance Guide and the final rule text, which will impact CUs.
“NAFCU does not believe that the minor technical change to the scope section of the CFPB’s TILA-RESPA Small Entity Compliance Guide will impact the applicability of TRID Compliance to small credit unions given the clarity in the rule text and official commentary,” said NAFCU Director of Regulatory Affairs Alicia Nealon. “We have spent significant time creating resources to assist our members with compliance efforts in advance of the TRID implementation deadline.”
Nealon added that NAFCU is closely monitoring the CFPB’s for its introduction of the new TRID proposal and “we will review it carefully at that time. NAFCU continues to urge the Bureau to publicize clearer guidance, correct commentary where necessary, and creates tools like FAQs and Legal Opinion Letters to assist credit unions’ compliance efforts.”
In CUNA’s letter to Cordray last week, Nussle said the issue is transparency.
“The CFPB made a change to the Small Entity Compliance Guide that will affect over 700 credit unions and numerous other financial institutions, but did not highlight, publicize, or explain this change,” said Nussle. “Although listed as a ‘miscellaneous administrative change’ by the Bureau, the new rule is a substantial change that may deal a striking blow to anyone making five or fewer mortgages in a calendar year. CUNA urges the CFPB to address our concerns and confirm that creditors making five or fewer mortgages per year, as outlined in the rule’s supplementary information and the September 2014 Small Entity Compliance Guide, are exempt from the TILA-RESPA rule.”
CUNA’s Elizabeth Eurgubian, deputy chief advocacy officer and senior counsel, added that following the CFPB announcing it would extend the TILA-RESPA compliance deadline to Oct. 1, 2015, that CUNA has expressed its support for the extension, but also strongly supports a safe harbor period.