Removing Barriers Blog

CUNA Joins Trades in Letter of Support for S. 1711
Posted July 08, 2015 by CUNA Advocacy

Earlier this week, Senators Tim Scott (R-SC) and Joe Donnelly (D-IN) introduced S. 1711, which would delay the effective date of the TILA-RESPA Integrated Disclosures (TRID) regulation until the end of the year.  CUNA strongly supports this legislation.  Like the House companion, introduced earlier this year by Representatives Steve Pearce (R-NM) and Brad Sherman (D-CA), the legislation would hold harmless institutions that show a good faith effort toward complying with the rule.    

As you know, the CFPB has announced that the original effective date of their TILA-RESPA Integrated Disclosures (TRID) regulation has been moved from its original date to October 3rd. CUNA has acknowledged the change and offered appreciation at the delay. However, credit unions and other financial institutions are not able to develop the new procedures and are unable to test these new disclosures in real time as until October 3rd they are required to follow the old rules through loan closing. This creates a real problem; credit unions know from past rule makings that there can be unanticipated problems when implementing a new procedure and for this reason CUNA continues to push for an official hold harmless period for complying with the TRID regulation.   

CUNA has been actively involved in remedying this situation for several months.  We have been working closely with others in the financial services sector to let Congress and the CFPB know that credit unions and other lenders need a hold harmless period during compliance.  Our efforts led to the introduction of the House legislation and the announcement by the CFPB of a delayed effective date through October 3.  These efforts continue.  Earlier this week, we urged the CFPB to do just what the legislation would provide: extend the deadline until the end of the year and protect credit unions that are trying to comply from lawsuits.  The Senate bill is another indication that Congress remains concerned with the implementation of this regulation and the impact it will have on lenders and borrowers.

For more information please contact Andy Price.