WASHINGTON–Both NAFCU and CUNA said they are pleased to see the CFPB has made a number of requested clarifications in its Truth in Lending Act-Real Estate Settlement Procedures Act integrated disclosure (TRID/RESPA) rule, but both groups are also calling for additional changes in the final rule. Both groups, for instance, had praise for changes made to the proposals around construction loans.
Among the changes in the proposal cited by both NAFCU and CUNA:
- Creation of tolerance provisions for the total of payments that parallel existing tolerances for the finance charge and disclosures affected by the finance charge.
- Extension of the rule’s coverage to include all cooperative units, which would simplify compliance.
- A provision for a uniform rule regarding application of the integrated mortgage disclosure requirements to cooperative units.
- Guidance provided on sharing disclosures with various parties involved in the mortgage origination process.
“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,” said NAFCU President and CEO Dan Berger in a statement. “Most notably, the Bureau has taken our advice regarding the codification of its informal compliance guidance. However, the Bureau has not gone nearly far enough to address the numerous substantive compliance issues that have been highlighted by credit unions. Although our compliance experts will continue to analyze the proposal to identify its full impact, NAFCU believes this should be the first step in a process to create a mortgage disclosure rule that is workable for financial institutions and benefits consumers.”
NAFCU also called for:
- Incorporating informal guidance into the rule.
- Clarifying that recording fees and transfer taxes may be charged in connection with housing assistance lending transactions without losing eligibility for the existing partial exemption.
- Extending the rule’s coverage to include all cooperative units rather than just transactions secured by real property
- Clarifying how a creditor may provide separate disclosure forms to the consumer and the seller.
NAFCU said it has also been pressing the bureau to address what it called “various ambiguities throughout the TRID rule.” Among NAFCU’s concerns: the inability to provide a revised loan estimate after providing the closing disclosure, calculation issues involving owner’s title insurance premiums, construction loan concerns and insufficiency of sample forms, among other things.
Comments on the rule are due to the CFPB by Oct. 18.