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In advance of today's hearing on the Truth in Lending Act/Real Estate Settlement Procedures Act integrated disclosures rule, NAFCU urged the leaders of a House Financial Services subcommittee to support legislation giving financial institutions a hold-harmless period through the end of 2015.

H.R. 2213, cosponsored by Reps. Steve Pearce, R-N.M., and Brad Sherman, D-Calif., would give financial institutions through Dec. 31 to make a good-faith effort to comply with the new regulation without threat of enforcement actions or lawsuits.

NAFCU Vice President of Legislative Affairs Brad Thaler wrote Subcommittee on Housing and Insurance Chairman Blain Luetkemeyer, R-Mo., and Ranking Member Emanuel Cleaver, D-Texas, to explain why credit unions need time to conclusively test their new platforms for compliance with the rule, which goes into effect on Aug. 1.

"Because the CFPB has prohibited early compliance with the TILA/RESPA rule, credit unions are unable to efficiently and thoroughly test their new systems today," Thaler noted. "Instead, they are forced to operate two platforms - one that supports the current Good Faith Estimate and the initial Truth-in-Lending disclosure, and one that supports the new Loan Estimate form."

Thaler also noted NAFCU's appreciation for NCUA Chairman Debbie Matz's assurance, issued in response to NAFCU's urging, that NCUA will examine credit unions for reasonable, good faith efforts to comply with the rule early on.