If you’ve ever tried to close on a mortgage while the clock is ticking, you know the frustration of regulatory delays that seem to exist just because they can.
Now imagine doing that while you’re relocating for a military assignment with a hard deadline.
Not fun, right?
That’s exactly why the Defense Credit Union Council (DCUC) just fired off a response to the Consumer Financial Protection Bureau’s Request for Information on mortgage credit access. And they’re not pulling punches.
The DCUC represents over 200 credit unions that serve more than 40 million members—many of them servicemembers and military families who need their financial institutions to move quickly when duty calls. Their message to the CFPB? Consumer protections are essential, but let’s cut the red tape that doesn’t actually help anyone.
“Consumer protections should be preserved, but the CFPB should eliminate requirements that do not materially improve consumer understanding and that disproportionately burden credit unions,” says Jason Stverak, DCUC Chief Advocacy Officer.
What They’re Asking For
DCUC isn’t trying to bulldoze the Truth in Lending Act (TILA) or the Real Estate Settlement Procedures Act (RESPA)—those core protections stay. They’re just asking for common-sense flexibility in how mortgage regulations get implemented. Think of it as keeping the safety features but upgrading the user interface.
Here’s what’s on their wish list:
- Streamline TRID timing requirements: Right now, minor changes can trigger unnecessary delays even when they wouldn’t change a borrower’s decision to move forward. Let’s fix that.
- Ditch the three-day waiting period for certain refinances: If you’re doing a rate-and-term refinance and you’ve already reviewed your Closing Disclosure, why the extra cooling-off period? You’re not buying a timeshare.
- Give smaller credit unions a break: Tailored requirements and safe harbors that acknowledge not every institution has a massive compliance department and processes thousands of mortgages monthly.
- Embrace the digital age: Clearer guidance on electronic disclosures, digital signatures, remote processes, and online document delivery. It’s 2025—let’s act like it.
- Rethink tolerance thresholds: Review requirements where lenders can’t reasonably predict or control costs at application time.
Why This Matters for Military Families
“These recommendations are about making the mortgage process work better for consumers without compromising the protections that matter,” explains Anthony Hernandez, DCUC President and CEO (and retired U.S. Air Force Colonel). “Servicemembers and military families often face tight timelines when relocating or making a permanent change of station, and their credit union should be able to provide timely access to mortgage credit without unnecessary regulatory delays.”
When you get PCS orders, you don’t have the luxury of waiting around for bureaucratic box-checking that doesn’t add real value. You need to move, find housing, and get your family settled—preferably without losing your security deposit or your mind.
The Small Credit Union Struggle
Here’s something that doesn’t get enough attention: smaller credit unions are getting squeezed by compliance costs that make perfect sense for mega-banks but can be crushing when you’re operating with a lean team and a smaller mortgage portfolio. Fixed regulatory costs don’t scale down proportionally, which means some credit unions simply can’t afford to offer certain mortgage products anymore.
That’s fewer options for consumers in communities where these smaller institutions might be the primary—or only—source of accessible credit.
“Credit unions are particularly well-positioned to serve borrowers whose circumstances may not fit conventional lending models,” Stverak adds. “Modernizing outdated processes can help preserve that access while allowing credit unions to focus their resources on serving members.”
Translation: Credit unions excel at relationship-based lending for people who don’t fit neatly into an algorithm’s idea of the perfect borrower. But they can only do that if regulations don’t tie their hands behind their backs.
The Bottom Line
DCUC is pushing the CFPB to establish clear principles and meaningful consumer protections while giving financial institutions the flexibility to determine the best way to communicate and deliver services in an increasingly digital world. It’s not about weakening safeguards—it’s about making sure those safeguards actually accomplish something useful instead of just creating paperwork.