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July 10, 2014 – Credit unions should begin preparing now for CFPB's new TILA-RESPA loan estimate and closing disclosure changes set to take effect Aug. 1, 2015, because they will require a major overhaul of current processes, according to speakers in a NAFCU webcast yesterday.

The webcast, "The 7th Rule: Unintended Consequences of the New, ‘Simplified' Mortgage Disclosures," was the second in a series on the Truth in Lending Act and Real Estate Settlement Procedures Act combined mortgage disclosures. Accenture Mortgage Cadence Legal and Compliance Lead John Levonick and Venable LLP Partner Suzanne Garwood were the speakers.

Participants were told of the five early lessons credit unions should learn now so they aren't surprised come August next year. Among these lessons: understanding how the rule changes will affect a credit union's workflow; the rule's impact on a credit union's product offerings; and how to ensure staff are properly trained ahead of time.

Levonick told credit unions to not "underestimate the importance of education" regarding these mortgage disclosure changes for both members and the credit union. Garwood discussed the new requirements in greater detail, explaining the rules' impact on construction loans, the definition of business days and the application process for credit union members.

NAFCU's on-demand webcasts are available for one year after the broadcast date and are included in the registration price. Wednesday's on-demand version of the webcast is still available for purchase.

Credit unions can learn more about CFPB's combined-disclosure rules during NAFCU's Regulatory Compliance Seminar Oct. 14-17 in Baltimore. Register by Aug. 22 to save $100.