By Matthew D. Urban, Attorney
On June 3, 2015 the director of the Consumer Financial Protection Bureau (CFPB), Richard Cordray, announced in a letter to Congress that the CFPB was postponing implementation of the TILA/RESPA rules until August 1, 2015. However in the Federal Register that is scheduled to be published on July 24, 2015 the CFPB issued a final rule stating that implementation would now not occur until Saturday October 3, 2015. The final rule also includes several technical amendments.
Although the final rule provides for additional time for credit unions to prepare for the new regulations the CFPB appears to remain steadfast in its position that full compliance will be required on October 3. However in the preamble to the rule it does reference Director Cordray’s June 3, 2015 letter to Congress at which time he indicated that the CFPB will be “sensitive” to the progress made by entities who have made “good faith” efforts to comply with the rule. While the CFPB will likely focus their initial enforcement efforts on the major players in the mortgage lending market and those blatantly ignoring the new provisions it does not mean that credit unions will not face scrutiny from NCUA examiners or the CFPB if they fail to substantially comply with the new regulations.
For more information about the new TILA/RESPA requirements and ensuring compliance with them, please contact the WWR Credit Union group.