WASHINGTON — The Consumer Financial Protection Bureau says it has not made any change to the definition of "creditor" under the Truth In Lending Act new rules regarding TILA/RESPA Integrated Disclosures (commonly referred to as TRID).
Last week, CUNA said it had discovered a discrepancy relating to exemptions for small lenders. Specifically, CUNA said there is a discrepancy between the CFPB's previous TILA-RESPA Small Entity Compliance Guide and supplementary information to the TRID rule compared with text in the latest Small Entity Compliance Guide and the final rule text.
Jim Nussle, president and CEO of CUNA, wrote a letter to CFPB that was released June 19.
When asked by Credit Union Journal if there was an issue, Sam Gilford, spokesperson for CFPB, said in an e-mail, "The new rule has not made any change to what entities are creditors under TILA. That definition has remained unchanged for nearly 20 years."
Gilford pointed to a paragraph from Page 14 of the compliance guide that states:
"This guide summarizes the TILA-RESPA rule, but it is not a substitute for the rule. Only the rule and its Official Interpretations (also known as commentary) can provide complete and definitive information regarding its requirements. The discussions below provide citations to the sections of the rule on the subject being discussed. Keep in mind that the Official Interpretations, which provide detailed explanations of many of the rule's requirements, are found after the text of the rule and its appendices. The interpretations are arranged by rule section and paragraph for ease of use.
The complete rule and the official interpretations are available here.
Alicia Nealon, director of regulatory affairs for NAFCU, told Credit Union Journal the trade group, "Does not believe that the minor technical change to the scope section of the CFPB's TILA-RESPA Small Entity Compliance Guide will impact the applicability of TRID Compliance to small credit unions given the clarity in the rule text and official commentary.
"We have spent significant time creating resources to assist our members with compliance efforts in advance of the TRID implementation deadline," Nealon said. "We are closely monitoring for the CFPB's introduction of the new TRID proposal and we will review it carefully at that time. NAFCU continues to urge the Bureau to publicize clearer guidance, correct commentary where necessary, and creates tools like FAQs and Legal Opinion Letters to assist credit unions' compliance efforts."
NCUA Urges TRID Comments
The effective date for TRID continues to fluctuate, as CFPB once again pushed it back — from Aug. 1 to Oct. 1, and now to Oct. 3, a Saturday.
NCUA on Thursday reminded credit unions they have until July 7 to comment on the CFPB's proposal to delay the effective date.
"These new mortgage disclosure requirements have important consequences for credit unions and their members," noted NCUA Chairman Debbie Matz. "Credit unions have an opportunity to voice their views on the timeline for rolling out the new disclosures. Credit unions may need time to perform conclusive testing and work with technology vendors on the TILA-RESPA mortgage disclosure systems. They can provide CFPB with valuable, practical information about their experiences preparing to issue the new disclosures and their implementation concerns."
The proposal to extend the effective date is expected to be published in the Federal Register soon and is currently available here.