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The CFPB on Thursday finalized an amendment to resolve the "black hole" issue under its TILA/RESPA integrated mortgage disclosure (TRID) rule. NAFCU has advocated in support of the amendment because of the compliance challenges, confusion and increased flexibility for credit unions to honor last-minute loan changes without unfairly absorbing costs.

The final amendment allows creditors to compare charges paid by or imposed on a consumer with amounts disclosed on a closing disclosure – rather than a loan estimate – to determine if the estimated closing cost was disclosed in good faith. It would also remove the four-business-day limit for providing closing disclosures but, like the current rule, would permit creditors to reset tolerances by providing a closing disclosure within three business days of receiving information sufficient to validate a reason for revision.

The current TRID rule leads to circumstances where creditors are unable to provide either a revised loan estimate or a corrected closing disclosure to reset tolerances; this situation is commonly referred to as a "gap" or "black hole."

Commenting on the proposed amendment in October, NAFCU wrote that credit unions "have been forced to bear the increased cost due to circumstances completely out of their control. These added costs divert valuable, limited resources away from providing more products and services to credit union members."

The final amendment will be effective 30 days after it is published in the Federal Register. NAFCU's regulatory compliance team is reviewing the rule and will release a blog on it soon.