Industry trade organizations representing banks and credit
unions recently published views and research findings about policies and
proposals issued by the Federal Housing Administration (FHA), Consumer
Financial Protection Bureau (CFPB) and the National Credit Union Administration
(NCUA).
Below are brief recaps of some of the regulatory matters
trade groups addressed through official comment letters, statements and
face-to-face meetings:
MBA weighs in on FHA loss mitigation option for
homeowners
The FHA recently announced a new loss mitigation home
retention option for borrowers with FHA-insured single-family mortgages
who are behind on their mortgage payments, which the agency simply refers to as
its “Payment Supplement.” The program offers mortgage servicers a new tool to
temporarily reduce a borrower’s monthly mortgage payment by up to 25 percent
without modifying the mortgage’s current interest rate. Read more here.
Mortgage Bankers Association (MBA) President and CEO
Bob Broeksmit released a statement noting the trade group’s support for the new
tool.
“Prioritizing payment relief and reducing operational complexities
were imperative, and we believe the improvements made following multiple rounds
of feedback will ensure mortgage servicers have a new effective and efficient
way to help struggling borrowers stay in their homes,” Broeksmit said. “As
recommended, a longer implementation period of January 2025, and extending the
sunset date of the COVID-19 recovery options beyond that date, will further
support servicers’ implementation efforts.”
ICBA urges agencies to provide regulatory relief
The federal banking agencies recently announced plans to
assess the appropriateness of current regulations as required under the
Economic Growth and Regulatory Paperwork Reduction Act (EGRPRA). Regulators are
mandated to conduct these reviews every 10 years.
Independent Community Bankers of America (ICBA) President
and CEO Rebeca Romero Rainey submitted a letter urging regulators to ensure
their review results in substantial relief for financial institutions.
“Consolidation within the industry, acquisitions of
community banks by credit unions, and a small number of de novo bank
applications are symptoms of the underlying problem: that the cumulative impact
of regulatory burden on community banks is overwhelming the industry and
causing long-term damage to the communities that depend on these vitally
important local resources,” Romero Rainey wrote.
ABA survey highlights costs associated with 1071 rule
The American Bankers Association (ABA) recently published
survey results in a report highlighting increases in small business expenses
associated with the Consumer Financial Protection Bureau’s (CFPB) small
business lending rule. The final rule, which amends the Equal Credit
Opportunity Act (ECOA), as required under Section 1071 of the Dodd-Frank Act,
will add 13 new required data points to business loan applications in an effort
to root out discriminatory lending practices. The report, titled “The true cost
of too much data,” explains why some financial experts anticipate the additional
data collection requirements will significantly increase the cost of small
business credit. Learn more about the survey results here.
ACU CEO meets with NCUA chair
America’s Credit Unions (ACU) President and CEO Jim Nussle recently
met with National Credit Union Administration (NCUA) Chair Todd Harper, along
with members of the ACU’s advocacy team. During the meeting, Nussle and Harper
discussed ACU’s policy priorities, including what the trade group considers an “overly
broad” use of “junk fees.” They also discussed expanding existing field of
membership policies, increasing flexibility for credit union investments and
credit unions’ participation in the Greenhouse Gas Reduction Fund.
“Thank you to Chairman Harper and his staff for their time
and great discussion today on how the NCUA and America’s Credit Unions can
support policies to increase access to safe and affordable financial services
at credit unions,” Nussle said in a statement. “We look forward to continued
collaboration with the NCUA on encouraging innovation, providing flexibility,
and continuing to ensure credit unions remain consumers’ best financial
partners.”