WASHINGTON–While legislation is still pending in the House that would delay legal liability on TRID (which officially went into effect Oct. 3, as CUToday.info reported here), CUNA said it has received a letter from NCUA regarding how it will handle compliance until that legislation moves forward or fails to pass.
CUNA has been pressing NCUA to provide “regulatory restraint” in enforcing the new rules before 2016. According to CUNA, NCUA said it will consider good faith efforts to come into compliance, although that still does not protect credit unions from any legal liability and enforcement accounts, noted CUNA, which said it will be monitoring CUs’ ability to comply with the new rules.
An analysis by NAFCU’s Director of Regulatory Compliance, Brandy Bruyere, noted that the Federal Financial Institutions Examination Council, of which NCUA is a member, had earlier released a statement that “the member agencies of the FFIEC recognize that the mortgage industry has needed to make significant systems and operational changes to adjust to the requirements of the Rule, and that implementation requires extensive coordination with third parties. We recognize that the mortgage industry has dedicated substantial resources to understand the requirements, adapt systems and train affected personnel, and that additional technical and other questions are likely to be identified once the new forms are used in practice after the effective dates . . . Specifically, examiners will consider: the institution’s implementation plan, including actions taken to update policies, procedures, and processes; its training of appropriate staff; and, its handling of early technical problems or other implementation challenges.
“This indicates that in these early days, how your credit union responds to the issues that arise will be part of this consideration of whether the credit union made ‘good faith’ efforts to comply in a substantial manner,” said Bruyere.