WASHINGTON, DC (July 25, 2016) — National Association of Federal Credit Unions (NAFCU) Executive Vice President of Government Affairs and General Counsel Carrie Hunt issued the following statement regarding the Government Accountability Office report released today that community banks and credit unions remain active in servicing mortgage loans under CFPB’s new mortgage-servicing rules though compliance costs are increasing. The report recommended that CFPB create a more complete plan for reviewing its rules.
“The GAO report confirms our concerns that CFPB’s mortgage servicing rules are impacting credit unions,” said Hunt. “Furthermore, the findings underscore the fact that increasing compliance costs have impacted customers’ costs and choices. The report notes that several institutions no longer offered customers certain products because offering them would necessitate additional regulatory requirements. For this reason, we continue to urge CFPB to provide greater guidance and clarifications on these rules to insure that credit unions can continue to serve their members’ mortgage needs.”
GAO found that the share of mortgages serviced by community lenders, including credit unions, remains small compared to other lenders, but has doubled between 2008 and 2015. Many lenders interviewed by GAO for this report said CFPB’s mortgage-related requirements resulted in increased costs for their institutions, such as the need to hire new staff and update systems.
While regulators and CFPB estimated the potential impacts of their news rules before issuing them, GAO, in this case, found the bureau’s plans incomplete. “CFPB has not yet finalized a retrospective review plan or identified specific metrics, baselines, and analytical methods, as encouraged in Office of Management and Budget guidance,” the report found.
NAFCU was the only financial services trade association to oppose subjecting credit unions to CFPB authority under Dodd-Frank. The association maintains that CFPB should exercise its authority to exempt credit unions from regulations aimed at bad actors.
The National Association of Federal Credit Unions is the only national trade association focusing exclusively on federal issues affecting the nation’s federally insured credit unions. NAFCU membership is direct and provides credit unions with the best in federal advocacy, education and compliance assistance. www.nafcu.org.
The National Association of Federally-Insured Credit Unions is the only national trade association focusing exclusively on federal issues affecting the nation’s federally-insured credit unions. NAFCU membership is direct and provides credit unions with the best in federal advocacy, education and compliance assistance. For more information on NAFCU, go to www.nafcu.org or @NAFCU on Twitter.
