Credit union trade groups said Monday they got some—but not all–of what they wanted in the CFPB's proposed updated mortgage disclosure rules.
The bureau on Thursday proposed amendments to federal mortgage disclosure requirements under the Real Estate Settlement Procedures Act and the Truth in Lending Act. The proposed amendments, the TILA-RESPA Integrated Disclosures, give regulatory backing to guidance that the CFPB has issued. The bureau also proposed tolerance provisions for the total number of payments an adjustment to a partial exemption that affects housing finance agencies and nonprofits, extension of coverage of the integrated disclosure requirements to all cooperative units, and guidance on sharing the disclosures with various parties involved in the mortgage origination process.
The bureau made it clear that it didn't intend to open major policy issues in the proposed rules.
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"We've been advocating for many of these proposed changes since January and initially found the CFPB hesitant to make any changes," CUNA President/CEO Jim Nussle said. "Today's announcement shows they are listening when CUNA, the leagues and credit unions speak."
NAFCU officials were more reserved in their praise.
"NAFCU appreciates the CFPB revisiting the TRID rule and, at first glance, there appear to be a few positive components that we strongly advocated for on behalf of our members," NAFCU President/CEO Dan Berger said. "Most notably, the bureau has taken our advice regarding the codification of its informal compliance guidance."
He added, however, that the agency did not go far enough in adopting NAFCU's suggestions.
CUNA said it was pleased with the creation of the tolerance provisions that parallel existing tolerances for the finance charge and disclosures affected by the finance charge. The association also said it was pleased that the bureau has proposed extending the rule's coverage to all cooperative units—a change that CUNA said it suggested.
CUNA also had asked for guidance on sharing disclosures with various parties involved in the mortgage origination process and the CFPB agreed.
On the other hand, Berger said that the agency had not gone nearly far enough in addressing substantive compliance issues cited by credit unions. He said that the proposed rules should be considered just the first step in developing a process to create an effective mortgage disclosure rule.
NAFCU said the association is concerned with the inability to provide a revised loan estimate after providing the closing disclosure. The association also is concerned about other calculation issues.
Official comments on the proposed rule are due Oct. 18.
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