WASHINGTON (7/22/15)--CUNA was successful in getting the Consumer Financial Protection Bureau (CFPB) to delay the effective date of the Truth in Lending Act-Real Estate Settlement Procedures Act (TILA-RESPA) integrated disclosures (TRID) rule to Oct. 3, but continues to call for a safe harbor for legal liability and enforcement through the end of the year.
“CUNA thanks the CFPB for listening to credit unions and extending the TRID implementation date to Oct. 3,” said Ryan Donovan, CUNA chief advocacy officer. “However, we will continue to pursue a safe harbor period for legal liability and enforcement through the end of the year due to the magnitude, complexity and expense of the rule. We are also still seeking public clarification that creditors with very small loan volume are exempt from the TILA-RESPA requirement.”
According to the CFPB, moving the effective date will allow the industry and consumers a “smoother transition.” Oct. 3 is a Saturday, which the bureau said will give industry stakeholders time over a weekend to launch new systems configurations and to test systems. The original effective date, Aug. 1, was also a Saturday.
The rule also contains two technical corrections.
CFPB Director Richard Cordray testified before the Senate Banking Committee last week and said that early examination of TRID compliance will be “diagnostic and corrective.” He added that the bureau is not looking to be punitive in the early days after TRID becomes effective.
CUNA, along with a number of other mortgage stakeholders and legislators, previously requested the bureau to allow for a hold-harmless period until Jan. 1.