Per CUNA request, CFPB to address TRID concerns

April 28, 2016

In response to months of advocacy from CUNA, the Consumer Financial Protection Bureau (CFPB) Thursday wrote to CUNA announcing it will initiate a rulemaking this summer to address issues with a recent bureau mortgage rule. The upcoming rulemaking will address ongoing concerns over the implementation of the bureau’s Truth in Lending Act-Real Estate Settlement Procedures Act integrated disclosures (TRID) rule.

“CUNA 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,” said Ryan Donovan, CUNA’s chief advocacy officer. “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.”

TRID became effective Oct. 3, 2015. Since then, CUNA has had ongoing discussions with the CFPB, outlining numerous areas that need clarification. These clarifications are needed to ensure credit unions are able to comply with TRID, as well as to ensure a properly functioning secondary market.

According to CFPB Director Richard Cordray, as spelled out in his Thursday letter, the bureau believes incorporating some of the CFPB’s existing informal guidance into the regulation text would be helpful. In addition, Cordray said he believes there are places in the regulation text and commentary where adjustments would “provide greater clarity and certainty.”

CUNA wrote to Reps. Blaine Luetkemeyer (R-Mo.) and Randy Neugebauer (R-Texas) earlier this month recommending numerous areas that need clarification from the bureau.

These include: the ability to cure errors or defects; potential delays when revising the closing disclosure; confusion regarding construction loans; the proper disclosure method for lender credits and principal reduction; and more.