Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
Alternative mortgage changes would not harm CUs CUNA
WASHINGTON (7/25/11)--The Consumer Financial Protection Bureau’s interim final rule that amends the Alternative Mortgage Transaction Parity Act (AMTPA), which became effective on July 22, would only impact a minimal number of state-chartered credit unions, the Credit Union National Association said. So-called “alternative-mortgage transactions” are transactions in which the interest rate or finance charge may be adjusted or renegotiated. Mortgages that feature adjustable interest rates, negative amortizations, balloon payments, shared equity, or shared appreciation are among these alternative transactions. Under AMTPA, state-chartered credit unions are permitted to take part in these types of mortgages, regardless of their home state’s laws. However, the mortgages must also meet standards set by the National Credit Union Administration. The CFPB’s AMTPA changes would remove portions of the Act that allowed credit unions and other institutions to make negative amortization or balloon payment mortgages. Some other preemption authorities that were granted under the Act would also be scaled back, as AMTPA would only preempt state laws that limit interest rate or finance charge changes. AMTPA also would not preempt state laws addressing late fees, rate increases due to late payment, prepayment penalties, interest-only payment periods, and negative amortization, According to CUNA, state-chartered credit unions that are permitted to follow federal mortgage regulations, or credit unions that elected to opt out of AMTPA, will not be impacted by the changes. CUNA has communicated with credit unions on the issue, and continues to monitor the progress of the AMTPA changes. The CFPB is accepting public comment on the AMTPA changes until Sept. 22. For more, use the resource link.
Other Resources

RSS print
News Now LiveWire
Post #QE, @federalreserve concerns still linger, says @CUNA's Schenk http://t.co/0GSrpUYpyG
10 minutes ago
.@CUNA's @HampelBill in @WSJ on @federalreserve mtg: 'No significant impact on financial markets or the economy' http://t.co/sbJycxdDXS
29 minutes ago
#ApplePay: #Creditunions need it to be competitive, says @CUNA webinar http://t.co/Rf8j9KWru2
38 minutes ago
Consumer confidence hits 7-year high #Market #NewsNow http://t.co/s7DGIGLZb3
18 hours ago
Still time 2 register 4 @TheNCUA Nov. 19 webinar, “Building a Loan Portfolio: Four Keys to Lending,” hosted by OSCUI. http://t.co/ezTFpnhHlP
19 hours ago