|Pictured: Bernie Wynne, CEO of Boston Firefighters CU; Lori Thompson, CEO of Premier FCU; and Jared Ihrig, Senior Assistant General Counsel, CUNA. |
The Consumer Financial Protection Bureau’s Small Business Review Panel conducted its first meeting Tuesday to discuss the bureau’s efforts to combine current mortgage disclosures required by TILA and RESPA. Lori Thompson, President and CEO of Premier Federal Credit Union, participated in the panel discussion alongside other small entity representatives .
Representatives were a mix of various small financial service providers including credit unions (with representatives from North Carolina, Massachusetts, and Florida) community banks, settlement agents, and mortgage brokers. The panel included representatives from the Consumer Financial Protection Bureau (CFPB), the Chief Counsel for Advocacy of the Small Business Administration, and the Office of Management and Budget Office of Information and Regulatory Affairs.
The CFPB indicated having small entity representatives participate in the rulemaking process help ensure it was made aware of the concerns and issues unique to small entities. The panel intends to use the input gathered from the discussion to prepare a report that includes findings by the panel on possible alternatives to minimize the burden on small entities. This report then becomes a part of the rulemaking record and under consideration by the CFPB.
The panel requested feedback pertaining to the prototypes the CFPB has created that will eventually replace current mortgage disclosures required by TILA and RESPA. The discussion’s most popular topics included costs if proposed changes are implemented (including training and software), increasing the timing of providing the a settlement disclosure to three business days before closing, and record retention requirements.
The NC Credit Union League initiated contact with the CFPB during Hike the Hill and stressed a desire to be included in any activities it offered. "As part of our ongoing focus on legislative & regulatory advocacy, the League wants to be as engaged in the process as we possibly can be," said President/CEO John Radebaugh.
This Hike the Hill contact led to the opportunity for Thompson to attend the panel. "I've been really engaged in the regulatory review process in the past and have written several comment letters," Thompson noted. "I was honored to be a part of the panel discussion, and it really gave me the sense that my voice was being heard."
Radebaugh added that credit unions and the CFPB both benefit from these discussions. "These exchanges also give credit unions the chance to build relationships with the CFPB and highlight model products and services that benefit credit union members,” Radebaugh said.
The CFPB intends to issue its proposed combined mortgage disclosure rule in July.