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Beginning the process of picking apart the CFPB's final TRID "fix" rule, today's post on the NAFCU Compliance Blog takes a closer look at the clarification provided regarding costs paid to affiliates for which there is no applicable tolerance.

NAFCU Senior Regulatory Compliance Counsel Elizabeth LaBerge provides the text of the final rule regarding amounts paid to affiliates and compares it with the proposal, deducing that the CFPB is adding a caveat. "A charge paid to an affiliate must be 'bona fide' in order for it to have no applicable tolerance rules," she writes. "The Bureau stated that this addition was intended to limit any potential harm associated with allowing variations without regard to tolerances on charges paid to affiliates."

She then goes on to discuss the language added to describe a charge that is bona fide.

"The good news is that more fees may not be subject to a tolerance requirement for good faith purposes," she concludes. "The bad news is that there is now yet another hoop in the TRID rules to push a fee through before it can be charged to a borrower.

"But credit unions and their affiliates are not in the business of charging their members illegal or sham fees, so this one should be relatively painless," she adds.