TILA/RESPA Duplicates, Contradicts State Laws
A group of 15 financial trade organizations, including NAFCU and CUNA, sent a letter to the CFPB requesting a review of contradictory state laws before the full implementation of the bureau’s TILA/RESPA mortgage disclosures rule.
“Countless state laws and practices threaten to add additional complexity to the implementation of the integrated disclosures rules. Varying disclosures of similar information in different formats will only frustrate consumer understanding,” the Sept. 17 letter read.
“To reduce that consumer frustration we ask that the bureau begin to review both duplicative and contradictory state laws with an eye to exercising any necessary authority to ensure that the objectives of this important effort are achieved,” the letter also said.
The organizations also requested the CFPB issue written guidance in addition to hosting webinars.
“We appreciate the bureau offering oral guidance through webinars, and other channels. However, due to the complexity of the rule, we strongly recommend that the bureau also provide reliable, written guidance on issues,” the organizations wrote.
“Reliable, written guidance is essential for lenders, settlement service providers, insurers, investors and other secondary market entities, regulators, and ultimately, consumers themselves,” the letter also said.
In addition to NAFCU and CUNA, the organizations that signed onto the letter include the American Bankers Association, American Escrow Association, American Financial Services Association, American Land Title Association, Community Home Lenders Association, Community Mortgage Lenders of America, Consumer Mortgage Coalition, Housing Policy Council of the Financial Services Roundtable, Independent Community Bankers of America, Mortgage Bankers Association, National Association of Mortgage Brokers, National Association of Realtors and Real Estate Valuation Advocacy Association.
The groups called on the CFPB to continue assisting industry vendors with compliance.
“Lenders and other settlement service providers, including community banks and smaller independent mortgage bankers, settlement agents and other third parties, rely heavily on vendors to build and maintain the systems necessary to comply with this important rule. Integration among systems used by sister industries may prove essential and should be fostered,” the letter said.