Greetings Compliance Friends!
Do you ever get that feeling that you have really accomplished something important, but your work is only beginning?
Last time I blogged, we discussed the impact of the recent passage of the Economic Growth Act (S.2155) (the Act) and how section 109 was intended to reduce regulatory burdens in mortgage lending by enabling credit unions to offer lower rates during the days leading up to consummation without triggering an additional three-day waiting period which is necessary when the APR reflected on the Closing Disclosure (CD) becomes inaccurate. While this was the intent of Congress, a watchful eye discovered that section 109 technically amends section 129(b) of the Truth in Lending Act (TILA) at 15 U.S.C. §1639(b), which contains the waiting period requirements for high-cost mortgage loans. After a few bedtime reading sessions of the TRID preamble, it appears that the requirements for when a credit union must provide the CD before consummation are actually based upon 15 U.S.C. §1638(b)(2)(B)(ii) and (b)(2)(D) of TILA, and not §1639(b). This apparent inconsistency has caused some confusion in the credit union industry, but no need to fear, NAFCU has already presented these concerns to the Bureau’s attention via a hand delivered letter to CFPB Acting Director Mulvaney last week. Hopefully we don’t have to wait too much longer for some much needed clarification and regulatory relief! Here is a brief breakdown of some of the other clarifications and guidance NAFCU has requested from the Bureau:
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