WASHINGTON (6/4/15)--CUNA says credit unions need more than the leniency pledged by the Consumer Financial Protection Bureau (CFPB) and National Credit Union Administration regarding the new integrated mortgage disclosure rule that goes into effect Aug. 1.
Jim Nussle, president/CEO of CUNA, said Wednesday that the regulator’s vow for leniency is a positive action and he thanked the CFPB for its announcement. However, Nussle also noted, "Credit unions need more as they work to hammer out the complexities of complying with the new disclosures.”
"We want to see a firm safe harbor put into place, one that would protect credit unions and other financial institutions from enforcement and liability for a set period of time as they acclimate to one of the biggest changes to the mortgage market in recent memory.”
The CFPB, in a letter sent to legislators Wednesday, said it would take into account “good faith” efforts to comply with its Truth in Lending Act-Real Estate Settlement Procedures integrated disclosures (TRID) rule after the rule’s implementation date.
An NCUA spokesperson told News Now that the agency would approach TRID compliance similar to the way it did with the implementation of the CFPB’s qualified mortgage and ability-to-repay rules in 2014. That is, NCUA examiners will be looking for reasonable good faith efforts by credit unions toward substantial compliance with the new rules, as of Aug. 1.
Reps. Blaine Luetkemeyer (R-Mo.) and Randy Neugebauer (R-Texas) released a statement Wednesday saying they were very disappointed in the lack of certainty from the CFPB.
“Nearly 300 Senators and House members have written to Director Cordray asking for a formalized hold harmless period. Anything short of that is unacceptable,” the legislators said. “That request was reiterated during a bipartisan meeting with Director Cordray yesterday afternoon. Today’s announcement falls far short of our expectations and runs contrary to the impression with which members were left yesterday.”
Luetkemeyer and Neugebauer said the CFPB should expect “vigorous oversight and attention” from Congress in how its supervision plays out after the Aug. 1 effective date. They also asked that financial institutions keep Congress informed of any and all disciplinary actions taken by the CFPB and other financial regulators on TRID implementation.