CFPB head stays mum on TRID, says credit unions undersell mortgage success

by Ryan Smith17 Mar 2016
The director of the Consumer Financial Protection Bureau wouldn’t give a definite answer on the TRID grace period, according to a HousingWire report. He also said the agency’s regulations aren’t hurting the financial industry, pointing to credit unions’ increased market share in the mortgage sector. Unfortunately, credit unions don’t agree.

CFPB Director Richard Cordray testified before the House Financial Services Committee Wednesday, defending the agency from lawmakers’ assertion that its regulations were hurting business. But leaders in the financial services industry beg to differ.

Wednesday morning – before Cordray had even testified – the National Association of Credit Unions released a letter from President and CEO Dan Berger to Financial Services Committee Jeb Hensarling (R-Texas).

“Unfortunately, many of our concerns about the increased regulatory burdens that credit unions would face under the CFPB have proven true,” Berger wrote. “As expected, the breadth and pace of the CFPB’s rulemaking is troublesome, and the unprecedented compliance burden placed on credit unions has been immense.”

Cordray, however, dismissed Berger’s claims, saying that press releases from trade groups often don’t reflect economic fact.

“Credit Union membership is at an all-time high,” Cordray told the committee. He said that credit unions are currently gaining market share – especially in the mortgage space – from the big banks. That fact “is not consistent with ‘killing the credit unions,’” Cordray said, according to HousingWire.

But Berger hit back, claiming that Cordray wasn’t being accurate.

“The assertion that credit unions are not being negatively affected by the tidal wave of overregulation arising from CFPB and Dodd-Frank could not be more wrong,” he said. “Director Cordray’s denial that the tide of regulation is not contributing to the continued trend of credit unions being forced to cut back on member services, merge or go out of business flies in the face of facts.”

During the hearing, Rep. Bradley Sherman (D-Calif.) also asked Cordray to extend the grace period on TRID. Cordray would not agree or disagree to do so, according to the HousingWire report. He said that the conversation with the mortgage industry over TRID remains ongoing.


  • by mlo | 3/17/2016 12:49:34 PM

    Bottom line .. get rid of TRID .. it does not benefit the consumer one bit .. a pack of lies that the intent of TRID is to protect the consumer .. it is designed for one thing .. create fines and fees .. being a mortgage originator, I have found that my clients only have suffered from the barrage of LE's and CD's .. it actually makes them feel that if something is being pulled over their eyes. The result of TRID has only caused increased closing costs to the consumer. TRID is a waste and a total joke .. it needs to be canned and remembered as a part of history that was a mistake

  • by Soonepepa | 3/17/2016 12:59:23 PM

    As usual, Cordray is incorrect. Credit Union market share increases are not an indicator that the heavy handed regulation by the CFPB isn't having an impact. The fact that credit unions are exempt from paying taxes affords them the ability to offer better interest rates and pricing than the "big banks," and even better than most community banks... which all have to pay taxes. Membership increases will also naturally cause and increase in mortgage volume. What the CFPB has done, via Dodd-Frank, is cause everyone to absorb significant costs, increase time to closing and, most importantly, remove about 20% of homebuyers from the market. Once upon a time, Congress had the desire to make homeownership more readily available and more affordable. What they have done via the CFPB, is make homeownership more expensive and more difficult. Congress, by their actions, has moved this country toward a population of renters.

  • by sbharkness | 3/17/2016 1:21:15 PM

    TRID is costing the consumers plenty! One lender after another is heading toward the door choosing to no longer be involved with lending money to consumers for the purpose of obtaining a mortgage. Wells Fargo who was just hit with a record 1.2 billion dollar fine while admitting no wrong doing was the 1st to announce they would be greatly cutting back on the number of mortgage's they bought/serviced. Yesterday W.J. Bradly announced they were leaving the mortgage business. It appears they have perfectly good mortgages on their books that they can not sell into secondary market. The secondary market is scared to death Corduroy and his jack booted thugs will find a period missing at the end of a sentence or some other trivial mistake. If W.J. Bradley can't sell the mortgages on its warehouse lines of credit they can't make new mortgages to consumers. Less choices for consumers equals higher costs. Has anyone noticed that lenders admin fee's have gone up as have their underwriting fee's? These are being passed directly to the consumer all because of the over zealousness of this rogue agency known as the C.F.P.B that needs to be dumped into the rubbish bin of history. The fiasco known as Dodds- Franks had one positive but short lived benefit to the consumer and that was that the consumer would never again be put on the hook to bail out the to big to fail/to big to prosecute banks. However, on a Novembers eve when a lazy Congress had all but left for Washington D.C for home an earmark was placed in a temporary spending bill to keep the government operating into the next year. It was just a few short sentences but what it did was remove the protection Dodd's-Franks provided the tax payer. So this means that the CEO's & CFO's of the mega-banks will once again take chances for big pay outs with little worry about the risks...after all, they have the American citizen to bail them out of any financial hot water they find themselves in. Yes, I am sticking up for the banks and at the same time slamming them. The truth is they own us. Make trouble for them and they make trouble for the country by shutting down the money supply. This causes the same effects as the U.N. placing sanctions against a Country like Iran and North Korea. The ordinary citizens suffer while those in power are still able to enjoy their extravagant lifestyle.


Should CFPB have more supervision over credit agencies?