The Consumer Financial Protection Bureau (CFPB) will no longer be the only entity monitoring TILA-RESPA Integrated Disclosure (TRID) rule compliance among lenders. The Office of the Comptroller of the Currency (OCC) announced Friday that TRID compliance exams are coming.
The OCC provided guidance on what to expect in their forthcoming TRID compliance exams directed to “chief executive officers and compliance officers of national banks and federal savings associations, federal branches and agencies, department and division heads, all examining personnel, and other interested parties.”
This guidance applies to national banks and federal savings associations with $10 billion or less in total assets, according to the OCC.
TRID went into effect October 3, 2015, and in the days following, the House of Representatives voted to pass a bipartisan bill (303-121) that will provide a "hold harmless" grace period for those making a “good faith” effort to comply with the regulation.
The White House threatened to veto the bill just one day before it passed in the House, according to a Statement of Administrative Policy.
"The CFPB has already clearly stated that initial examinations will evaluate good faith efforts by lenders," the White House wrote. "The Administration strongly opposes H.R. 3192, 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. If the President were presented with H.R. 3192, his senior advisors would recommend that he veto the bill.”
The initial examinations that the OCC intends to conduct will evaluate a “bank’s compliance management system and overall efforts to come into compliance, recognizing the scope and scale of changes necessary for each bank to achieve effective compliance.”
The OCC noted that banks will be expected to “make good faith efforts to comply with the rule’s requirements in a timely manner.”
The bulletin also explained that the examiners will be looking at the bank’s implementation plan, including actions taken to update policies, procedures, and processes, as well as training of appropriate staff and handling of early technical problems, or other implementation challenges.
This approach will be similar to the one that the OCC took in initial examinations for compliance with the mortgage rules implementing provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act that went into effect in January 2014.
No official exam date was mentioned by the OCC.
The OCC provided these TILA-RESPA narratives and procedures:
• Interagency TILA/Regulation Z Examination Manual Narrative
• Interagency TILA/Regulation Z Examination Procedures
• Interagency RESPA/Regulation X Examination Manual Narrative
• Interagency RESPA/Regulation X Examination Procedures