May 27, 2015

Hunt lauds House, Senate letters backing TILA/RESPA grace period

NAFCU voiced appreciation for letters signed by well more than half of U.S. House members and dozens of senators urging the Consumer Financial Protection Bureau to allow credit unions and others a grace period in complying with new mortgage lending disclosures that kick in Aug. 1.

Late last week, 254 members of the House signed a letter to CFPB Director Richard Cordray recommending the agency allow credit unions and other financials a grace period for enforcement and liability for institutions striving to make good-faith efforts to comply with the the Truth in Lending Act/Real Estate Settlement Procedures Act integrated mortgage disclosures rule. A similar letter was sent by 41 senators.

"NAFCU appreciates the bipartisan efforts shown by lawmakers," said Senior Vice President of Government Affairs and General Counsel Carrie Hunt. "A grace period will allow those who make a good-faith effort to comply with the regulation without the fear of potential enforcement actions or lawsuits without creating any delays in implementation."

In the letter, the House signatories urged Cordray to implement the grace period for those seeking to comply in good faith from Aug. 1 through the end of this year.

"As you know, the housing market is highly seasonal, with August, September and October consistently being some of the busiest months of the year for home sales and settlements," the letter states. "By contrast, January and February are consistently the slowest months of the year for real estate activity."

NAFCU has taken several actions supporting delay in the impact of the rules while credit unions test revamped systems. It supports a hold-harmless period proposed in H.R. 2213, introduced by Reps. Steve Pearce, R-N.M., and Brad Sherman, D-Calif. Earlier this month, NAFCU and numerous other trade groups signed a letter to CFPB urging a grace period.

NCUA Board Chairman Debbie Matz, at NAFCU's urging, has also said NCUA would allow for a grace period in NCUA supervision.