The CFPB announced Wednesday that it will issue a proposed amendment to delay the effective date of the Truth in Lending Act and Real Estate Settlement Procedures Act to Oct. 1, 2015 – which would give credit unions and other mortgage lenders two more months to comply with the rules than originally anticipated.
“The CFPB will be issuing a proposed amendment to delay the effective date of the Know Before You Owe rule until October 1, 2015,” CFPB Director Richard Cordray said in a prepared statement. “We made this decision to correct an administrative error that we just discovered in meeting the requirements under federal law, which would have delayed the effective date of the rule by two weeks.”
Cordray added, “We further believe that the additional time included in the proposed effective date would better accommodate the interests of the many consumers and providers whose families will be busy with the transition to the new school year at that time.”
The public will have the opportunity to comment on the proposed delay, and a final decision will be made shortly thereafter, the agency said.
NAFCU President/CEO Dan Berger said he welcomes the announcement, but that a two-month delay may still not be enough to meet credit unions' needs.
“This two-month delay would give credit unions much-needed time to complete their testing and update processes as they seek to comply with this complex rule,” Berger said in a statement. “However, NAFCU believes the bureau and the NCUA still must take credit unions' good-faith efforts to comply into account – beyond the Oct. 1 deadline.”
NAFCU has pushed for a TILA/RESPA deadline delay, which was previously set as Aug. 1, 2015.
Earlier this month, the CFPB clarified the circumstances under which mortgage lenders may allow consumers more time to review a mortgage package, stating that lenders are only required to start over on borrowers' three-day review processes under three specific loan circumstances.
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Natasha Chilingerian
Natasha Chilingerian has been immersed in the credit union industry for over a decade. She first joined CU Times in 2011 as a freelance writer, and following a two-year hiatus from 2013-2015, during which time she served as a communications specialist for Xceed Financial Credit Union (now Kinecta Federal Credit Union), she re-joined the CU Times team full-time as managing editor. She was promoted to executive editor in 2019. In the earlier days of her career, Chilingerian focused on news and lifestyle journalism, serving as a writer and editor for numerous regional publications in Oregon, Louisiana, South Carolina and the San Francisco Bay Area. In addition, she holds experience in marketing copywriting for companies in the finance and technology space. At CU Times, she covers People and Community news, cybersecurity, fintech partnerships, marketing, workplace culture, leadership, DEI, branch strategies, digital banking and more. She currently works remotely and splits her time between Southern California and Portland, Ore.
