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Regulatory Advocacy Report Features CUNA TILA/RESPA Comments
WASHINGTON (3/12/13)--The Consumer Financial Protection Bureau continues its work to integrate Truth in Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA) mortgage disclosures, and a Credit Union National Association comment letter on this project is one of many issues tackled in this week's Regulatory Advocacy Report.

In the comment letter, CUNA says it is concerned that the CFPB's proposal to test certain fixed rate and adjustable rate loans may not adequately address all loans in the product marketplace.

For example, CUNA Associate General Counsel Jared Ihrig wrote that CUNA does not see evidence that the CFPB is testing loans where features such as simultaneous second lien loans, refinance transactions, cash-out transactions, loans where buydowns may occur with third parties, loans with lender credits, or loans where there are non-borrowers signing the security instrument, but not the note, are occurring.

The CUNA comment letter called on the CFPB to expand the scope of its quantitative testing to include more loan scenarios as part of its proposed testing methodology.

"Without testing for these and other variables that can often be made part of borrowers' real estate transactions, CUNA believes that the combined TILA/RESPA disclosures may not adequately take into account the differences in these transactions, which may cause further concern and frustration for lenders and consumers, alike," Ihrig wrote. The CUNA comment letter suggested the CFPB incorporate points and fees calculations to its testing regime. CUNA also commented on the timing of the tests.

For the full comment letter, use the resource link.

This week's edition of the Regulatory Advocacy Report also features details on:
  • A CFPB survey on financial services marketed to higher education students;
  • Federal Financial Institution Examination Council social media guidance;
  • National Credit Union Administration regulation reviews;
  • The Financial Accounting Standards Board's (FASB) proposal regarding financial reporting of expected credit losses on loans and other financial assets, and more.
The FASB proposal was among many items covered in a CUNA "Pressing Regulatory and Compliance Issues Audio Conference" held last week. (See News Now coverage: FASB Changes, CFPB Agenda Detailed In CUNA Audio Conference: Part 2, and New Credit Rating, CFPB Info Featured In CUNA Pressing Issues Call)

Employees or volunteers of CUNA/state credit union league-affiliated credit unions can sign up to receive the Regulatory Advocacy Report.

The Regulatory Advocacy Report is archived on cuna.org.
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