CUNA has asked the CFPB to extend the deadline for credit unions to comply with new regulations under the Truth in Lending Act and Real Estate Settlement Procedures Act to Jan. 1, 2016.
In a July 6 comment letter on the agency proposal to shift the TILA-RESPA compliance deadline from Aug. 1 to Oct. 1, 2015, CUNA Senior Director of Advocacy Andrew Price wrote that the current deadline falls in the middle of the summer, one of the busiest seasons for credit unions.
“We note that many credit unions will need to run dual tracks during the transition to provide for those loans whose applications are received before the effective date versus those received after the effective date as provided in the rule,” Price wrote in the letter.
“Allowing the industry ample time to properly plan for compliance with this major rule will be crucial to ensure proper implementation. This transition will be cumbersome for most, so any additional time will greatly benefit the industry, minimize costs and provide a smooth transition to the new regulatory regime.”
Price also repeated CUNA's request that the agency clarify that those credit unions that make five or fewer mortgages per year would remain exempt from the TILA-RESPA rules.
“We urge the CFPB to address this issue so that the lending operations of credit unions are not negatively impacted and members can continue to receive financial services to meet their needs, Price added.
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