NAFCU, CUNA and 28 other trade associations – including banking associations – sent a letter to federal legislators Monday urging them to support H.R. 3192, a measure that would hold lenders harmless for mistakes they make when attempting to comply in good faith with the CFPB's new real estate closing rule.

However, on Tuesday President Obama threatened to veto the legislation should it pass Congress.

"The CFPB has already clearly stated that initial examinations will evaluate good faith efforts by lenders. The Administration strongly opposes [the bill], as it would unnecessarily delay implementation of important consumer protections designed to eradicate opaque lending practices that contribute to risky mortgages, hurt homeowners by removing the private right of action for violations, and undercut the nation's financial stability," the White House said in a release.