On Nov. 22 MCUL & Affiliates provided its comment letter to the CFPB regarding the CFPB’s interim rules on RESPA and TILA. The rules relate to members in bankruptcy and those members who have invoked the cease communication provision under the Fair Debt Collection Practices Act. The interim rules provide an exemption for the credit union from the early intervention and periodic statement requirements for those particular members. The interim rules also amend the definition of coverage relating to high-cost mortgages. The definition was revised and commentary amended to provide that HOEPA disclosures are encourages, but not required to be provided less than three business days prior to consummation, in order for credit unions to have more time to comply with the counseling requirement.
The MCUL is supportive of the CFPB’s proposed amendments to exempt servicers from the periodic statement requirements for residential mortgage loans, the adjustable-rate mortgage notices and from the early intervention requirements while a borrower is either in bankruptcy or has invoked the cease communications provisions under the FDCPA. The MCUL expressed concern regarding the homeownership counseling requirements for high-cost mortgages and the ability for members in rural areas to receive this counseling prior to closing when the closest counselor could be 80 miles or more away. Lastly, MCUL addressed CFPB’s concern over the bureau’s issuance of bulletins to provide regulatory commentary as opposed to being addressed within the regulation. The MCUL’s comment letter can be found here.