by. Henry Meier
Well,it’s official. Inthe political equivalent of holding your breath until you get your way, so-called House Conservatives are soconvinced that Obamacareshould not exist that they reallyfeel that if they keep government from spending money on itselflong enough,legislators will come totheir senses and decide not to implement the President’s major domestic achievement after all. While thisabject lesson in political imbecility will undoubtedly do some damage to the economy, it won’t have muchof a short-term impact on the day-to-day operation of credit unions or their regulators. It’s full speed ahead for Dodd-Frank’s regulations.
Yesterday, HUD came out with regulationsproposing its version of a qualified mortgage.What’s more, we only have thirty days to respond to thisproposed QM standard, even though regulations of this importance should have at least a 60 day comment period. In explaining why it is fast tracking the proposal, the regulatornoted that unless it can get its regulations promulgated by January 10, 2014an important source of financingfor first time homebuyers and minorities will be subject to the CFPB’sQM definition. HUD is concerned that the CFPB’sQM criteria”is not focused on, to the extent that HUD’s definition is required to be, the populations that the mission of HUD is to serve.” This is the bluntest assessment I have yet seen that Dodd-Frank may result in fewer individuals being qualified for home ownership. The problem I have with HUD’s 30-day comment period is that it has had several months to respond to CFPB’s proposal. The issues involved here are too complicated to be rushed through without an adequate public vetting and 30 days just isn’t enough time for an intelligent look for what HUD is proposing.
In the meantime, NCUA sent out a letter about the impending government shutdown. Since it is funded by fees as opposed to general fund appropriations it avoids being subject to the shutdown. And, of course, none of this directly impact’s New York State government. Yesterday, Eric Schneiderman, New York’s Attorney General, announced a settlementwith a group of debt collectors in relation to theircollection effortson behalf of pay daylenders. The settlement is the latest in a series of escalating legal skirmishes betweenthe state and pay daylenders over whetherNewYork has the ability to clamp down on out ofstatepay daylenders and those based on tribal lands.
