Amendments to CFPB Mortgage-Lending Rules Released; CUNA Survey Seeks Credit Unions’ Input on the Compliance Burden
September 17, 2013
Sept. 17, 2013
“We know this is too important, and too difficult of a challenge to credit unions, for us to give up the fight. Your responses will help us make one last push—and, we hope, reduce the burdens of these rules.”Bill Cheney, CUNA
New amendments to the Consumer Financial Protection Bureau’s (CFPB) mortgage-lending rules were released on Friday, adding to concerns about the ability of financial institutions to meet the bureau’s January 2014 deadline for implementation.
“Credit unions tell us that the overwhelming compliance burden with the new rules—particularly during tax-reporting season, when many necessary computer systems aren’t available to be retooled—presents seemingly impossible practical hurdles,” says Bill Cheney, president and CEO of the Credit Union National Association. “CUNA has been working with CFPB to improve the rules, and to delay compliance.”
The amendments announced Friday focus primarily on:
- Error-resolution and loss-mitigation procedures under the mortgage-servicing rule.
- Amounts counted as loan-originator compensation to retailers of manufactured homes under the HOEPA and Ability to Repay rules.
- Exemptions available to creditors that operate predominantly in “rural or underserved” areas in various mortgage regulations.
- The application of loan-originator compensation rules to credit union tellers and similar staff.
- The prohibition on creditor-financed credit insurance.
- Adjusting the effective dates for certain provisions of the loan-originator compensation rules.
(Detailed information about the amendments were included in a Compliance Bulletin released Monday by the Northwest Credit Union Association.)
CFPB Director Richard Cordray hinted that the new amendments were coming “any day now” in a speech last week to the American Mortgage Conference, but he said the bureau was unlikely to consider an extension to the implementation deadline. “Our mortgage rules will take effect in January,” he told the conference. “We do not believe that the bureau’s regulatory implementation project should slow down the implementation process at any lender or servicer.”
Cheney says CUNA disagrees, and the association is asking credit unions to complete an online survey about their ability to meet the implementation deadline.
“We know this is too important, and too difficult of a challenge to credit unions, for us to give up the fight,” Cheney says. “Your responses will help us make one last push—and, we hope, reduce the burdens of these rules.”
The survey is available here, and will be available online until Monday, Sept. 23.
Questions? Contact the NWCUA Compliance Department at 800.546.4465 or firstname.lastname@example.org.