Newsroom

CFPB and other financial institution regulators will be focusing on lenders' "good faith" efforts at compliance with the Truth in Lending Act/Real Estate Settlement Procedures Act integrated mortgage disclosures rule in initial examinations, bureau Director Richard Cordray reiterated Thursday.

The TRID rule takes effect tomorrow. Cordray, in a letter to financial and real estate industry trades that echoes a similar statement he made this June, said examiners early on "will evaluate an institution's compliance management system and overall efforts to come into compliance, recognizing the scope and scale of changes necessary for each supervised institution to achieve effective compliance."

He continued, "Examiners will expect supervised institutions to make good faith efforts to comply with the Rule's requirements in a timely manner." To that end, he said 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."

Cordray said this is similar to the approach taken with regard to mortgage rules that took effect in January 2014.

Both Cordray and NCUA Chairman Debbie Matz this summer indicated there will be a focus on good-faith compliance efforts under TRID during the early stages of implementation.

NAFCU, which had urged action of both agencies along that line, also supports H.R. 3192, a bill the House plans to vote on next week to establish a hold-harmless period under TRID that would last to Feb. 1, 2016.