CUNA meets with CFPB staff to urge focus on bad actors, not CUs
WASHINGTON (9/24/15)--Credit union mortgage issues were the topic of discussion in a meeting between CUNA and Consumer Financial Protection Bureau (CFPB) staff Tuesday. In particular, CUNA staff emphasized that future regulations should address problem actors in the industry, rather than credit unions.
The discussion centered on the Truth in Lending Act-Real Estate Settlement Procedures Act integrated disclosures (TRID) rule and Home Mortgage Disclosure Act (HMDA) reporting.
Home equity lines of credit should be exempt from additional HMDA reporting, CUNA believes. CUNA staff also urged the CFPB to provide an exemption from any additional HMDA requirements for credit unions that originate less than 500 mortgage loans per year.
Regarding TRID, CUNA:
Expressed concern over the overwhelming amount of time credit unions are spending trying to comply with all of the rule’s requirements before the Oct. 3 deadline;
Continued its push for the CFPB to publicly explain discrepancies in the TRID rule text, such as ambiguity surrounding the definition of small creditors that are subject to the new requirement;
- Urged the bureau to work with the National Credit Union Administration and its examiners to ensure credit unions will not be cited for TRID violations in the coming months if they are making a good faith effort to comply. The CFPB has said this will be the case, but CUNA has asked the agency to provide it in writing.
Tuesday’s meeting was the latest in recent CUNA meetings with regulators in order to communicate credit union concerns with additional mortgage requirements, and to advocate for more exemptions for credit unions.