CUNA Asks CFPB to Further Delay TRID Effective Date Until January 1, 2016

The Credit Union National Association (CUNA) has asked the Consumer Financial Protection Bureau (CFPB) to delay implementation of the TILA-RESPA Integrated Disclosure (TRID) Rule, also called the Know Before You Owe Mortgage Rule, until January 1, 2016.

CUNA, which represents America's credit unions and their more than 100 million members, issued their request in the form of a comment submitted via email on CFPB's proposal that would delay the effective date of TRID until October 3, 2015. Originally, TRID was scheduled to be implemented on August 1. The CFPB is allowing public comments until Tuesday, July 7, on its proposal to extend the TRID date to October 3.

"CUNA believes the additional two month period is a step in the right direction to allow for an orderly transition to the new regulatory regime," the organization wrote in its comment. "In particular, the extension is welcome given that the current effective date falls during the summer months, which is the busiest time of the year for many credit unions. We would, however, continue our ongoing call to implement a safe harbor for legal liability and enforcement until the end of the year to allow for proper transition to the new regulatory regime. We believe this is appropriate given the magnitude of changes requested by the CFPB."

CFPB announced the proposed amendment in late June to extend the TRID deadline by two months to correct an "administrative error" which necessitated a minimum extension of two weeks. The Bureau had also received many requests from lawmakers, lenders, and other mortgage industry professionals who are concerned with their ability to become fully compliant with the requirements of the rule in time for the original August 1 effective date.

CUNA asked it its comment that the effective date of TRID be extended to January 1, 2016, together with a "corresponding safe harbor for legal liability and enforcement beyond the effective date." The association noted in its comment that may credit unions will need to run dual tracks during the transition in order to provide for loan applications received before the TRID effective date as opposed to loan applications received after the effective date.

"Allowing the industry ample time to properly plan for compliance with this major rule will be crucial to ensure proper implementation," the Association wrote. "This transition will be cumbersome for most, so any additional time will greatly benefit the industry, minimize costs, and provide a smooth transition to the new regulatory regime."

CUNA referred to a June 19 letter the Association wrote to the CFPB in which it requested an exemption from the TRID rule for creditors that make five or fewer mortgages per year, as outlined in the rule's supplementary information and the September 2014 Small Entity Compliance Guide.

"Now that the effective date has been extended, there is adequate time to correct the inconsistency between the text of Regulation Z and the September 2014 Small Entity Compliance Guide and the supplementary information," the Association wrote. "We urge the CFPB to address this issue so that the lending operations of credit unions are not negatively impacted and members can continue to receive financial services to meet their needs."