CUs and other financial services stakeholders are busy this week addressing changes proposed late last week by the Consumer Financial Protection Bureau regarding the mortgage closing process.
Both the National Association of Federal Credit Unions and Credit Union National Association had requested a number of changes to the Truth in Lending Act/Real Estate Settlement Procedures Act Integrated Disclosure rule commonly referred to as TRID. But the CFPB was "originally hesitant" to make any modifications, according to CUNA's Senior Director of Regulatory Affairs Andy Price, hoping issues would resolve themselves without intervention.
Comments on the proposed changes are due Oct. 18.
While Price said CUNA is "extremely happy" to see the changes include clarifications on construction rules, co-ops and others, NAFCU President/CEO Dan Berger stated the proposed changes — though welcome — are don't go far enough.
"NAFCU appreciates the CFPB revisiting the TRID rule…there appear to be a few positive components that we strongly advocated for on behalf of our members," Berger said. "However, the bureau has not gone nearly far enough to address the numerous substantive compliance issues that have been highlighted by credit unions," he added. NAFCU said the inability to provide a revised loan estimate after closing disclosure, calculation issues involving title insurance premium and insufficiency of sampling forms are also top concerns for the association.
Other changes to TRID in the proposed rule:
- Allowing a revised closing disclosure to reset tolerances under the same circumstances the current rule permits credit unions to issue a revised loan estimate;
- Incorporating informal guidance into the rule;
- Clarifying recording fees and transfer taxes may be charged in connection with housing assistance lending transactions without losing eligibility for the existing partial exemption;
- Extending coverage to include all cooperative units rather than just transactions secured by real property; and
- Clarifying how a creditor may provide separate disclosure forms to the consumer and the seller.
NCUA Comment Request
According to the Federal Register, the National Credit Union Administration has requested comment on the agency's information collection activities. In the notice, the NCUA, "as part of its continuing effort to reduce paperwork and respondent burden," asks the general public and other agencies to comment on various collection procedures: Monitoring Bank Secrecy Act Compliance, Production of Non-public Records/Testimony of Employees for Legal Proceedings (referred to as a Touhy Request) and the Registration of Mortgage Loan Originators.
NCUA requests comments concerning:
- The necessity of collected information for proper performance of the agency's function and the information's practicality;
- The accuracy of NCUA's information collection estimates — including methods and assumptions;
- Ways to enhance the collection procedures;
- Ways to minimize the burden of information collection, as well as request for comment on additional technology like automated collection.
The comment period for this notice ends 30-days from the notice's posting on Aug. 30 of this year.
