March 25, 2015

Matz to Berger: NCUA seeking 'good faith' TILA/RESPA efforts

As urged by NAFCU, NCUA Board Chairman Debbie Matz told association President and CEO Dan Berger the agency will be examining credit unions for reasonable, good faith efforts to comply with CFPB's Truth in Lending Act/Real Estate Settlement Procedures Act rules as of Aug. 1.

Berger, writing earlier this month about the looming compliance deadline, recalled the agency considered credit unions' "good faith efforts toward substantial compliance" in the early days of CFPB's ability-to-repay, qualified mortgage and mortgage servicing rules in 2014.

Matz replied that is what NCUA will do this time around as well. To that, Berger noted thanks. "We appreciate Chairman Matz's leadership and NCUA staff's efforts to ensure as smooth a transition for credit unions as possible to the new TILA/RESPA requirements."

"NCUA examiners will be looking for reasonable and good faith efforts by credit unions toward substantial compliance with the new rule as of the effective date," the NCUA chairman wrote. "NCUA recognizes that some credit unions may need time to perform conclusive system testing and work with their technology vendors to resolve any remaining issues that may occur from extensive testing and use, once their new TILA/RESPA mortgage disclosure systems become fully operational on August 1.

"I appreciate your bringing this request to me," she wrote. "We will reassure credit unions that for consistency, NCUA will take the same examination approach as we have with prior CFPB rules."