CFPB Letter on TRID Compliance
Written by Brandy Bruyere, Director of Regulatory Compliance
By now, October 3rd has come and gone and we officially are operating in a post-TRID world. In the early days of implementation, keep in mind that NAFCU's compliance team is here to help our members.
Despite reports of a possible hold harmless period based on questions asked of CFPB Director Richard Cordray during his testimony before the House Financial Services Committee, on Friday the Bureau issued a press release referencing a letter sent to industry on TRID compliance. This letter and press release reiterate past statements from the Bureau and mirror information provided by NCUA back in March.
Here's an excerpt from the TRID Letter:
The member agencies of the FFIEC recognize that the mortgage industry has needed to make significant systems and operational changes to adjust to the requirements of the Rule, and that implementation requires extensive coordination with third parties. We recognize that the mortgage industry has dedicated substantial resources to understand the requirements, adapt systems and train affected personnel, and that additional technical and other questions are likely to be identified once the new forms are used in practice after the effective date.
During initial examination for compliance with the Rule, the agencies examiners will evaluate an institution's compliance management system and overall efforts to come into compliance, recognizing the scope and scale of changes necessary for each supervised institution to achieve effective compliance Specifically, examiners will consider: the institution's implementation plan, including actions taken to update policies, procedures, and processes; its training of appropriate staff; and, its handling of early technical problems or other implementation challenges.
(Emphasis added)
This indicates that in these early days, how your credit union responds to the issues that arise will be part of this consideration of whether the credit union made good faith efforts to comply in a substantial manner.
The letter goes on to indicate that the process will be similar to the approach taken when the Dodd-Frank mortgage servicing rules became effective in January, 2014.
Credit unions have been working diligently to comply with TRID and tackle its challenges and ambiguities. Still, this seemed to capture the sentiment of receiving this 11th hour press release:
***
Hang Up that Auto Dialer! Understanding the Risks of the TCPA
Live Webcast: Thursday, October 8 | 2:00 p.m. - 3:30 p.m. EST
The Telephone Consumer Protection Act (TCPA) can affect your methods of reaching members via their mobile device, especially with an automated calling program. Attend this webcast to help avoid enforcement action and consumer litigation. You'll learn the key elements of the TCPA, the impact of the recent FCC ruling on autodialing, and how your credit union can properly manage an automated member contact.