CFPB Issues Semiannual Regulatory Agenda, Mortgage Lending Changes Anticipated
January 8, 2013
January 8, 2013
The Consumer Financial Protection Bureau (CFPB) today issued its semiannual regulatory agenda, which includes a number of rules in the final rulemaking stage.
Beginning as early as tomorrow, the CFPB is expected to begin issuing a handful of final rules that will have an impact on the way mortgage lending works. Changes are expected to loan originator compensation, mortgage servicing, disclosures, escrow accounts and the way ability to repay is calculated.
“Of note is that the agency does not anticipate issuing many new notices of proposed rulemakings over the coming months,” said John Trull, director of regulatory advocacy for the Northwest Credit Union Association. “This might be in anticipation of the outcry to modify some of the expected final rules.”
The impacts of many of the CFPB’s proposed rules have been difficult to assess because the proposed rules are so interrelated. For example, the rules affecting high-priced mortgage lending may not impact a significant number of credit unions if all other factors were held constant. But in a separate rule, the CFPB has proposed changes to what constitutes a high-priced mortgage. This separate rule might make mortgages that credit unions are currently doing fall into the high-priced or high-cost mortgage category—loans with which a lender may never have intended to be involved.
“The Association and our members have had the opportunity to address our concerns with the CFPB, and we are hopeful that our regulatory advocacy efforts will lead to some safe harbors and exemptions for smaller financial institutions,” Trull said. “But credit unions are anticipating some significant impacts and costs associated with the final rules—particularly with the new disclosure requirements.”
Most provisions associated with the final rules are not expected to take effect until a later date, giving the Association an opportunity to continue to advocate for improvements to the rules before they become effective. The Association’s Regulatory Advocacy Committee will meet later this month to discuss a coordinated advocacy strategy and response to the most concerning provisions.
The CFPB will issue the next semiannual regulatory agenda in the spring.
The NWCUA Regulatory Advocacy team works with state and federal regulators to help reduce the regulatory burden on credit unions and protect the credit union movement. The Association encourages members to participate in the regulatory process. If you have any questions on these or any regulatory issues, please contact Director of Regulatory Advocacy John Trull at firstname.lastname@example.org, or at 503.350.2209.