WASHINGTON (6/19/13)--"Credit unions strongly support efforts to simplify their compliance obligations," including a proposed U.S. Department of Housing and Urban Development (HUD) rule that would streamline Federal Housing Administration (FHA) financial statement reporting requirements, Credit Union National Association Deputy General Counsel Mary Dunn said in a comment letter filed this week.
Under the HUD proposal, small credit unions and other financial institutions with less than $500 million in assets would not be required to submit separate annual audited financial statements as a condition of FHA lender approval and recertification. Unaudited statements that are submitted to the National Credit Union Administration or other prudential regulators would suffice.
Audited financial statements would only be required if HUD determines an institution poses heightened risk to the FHA insurance fund.
"We believe the proposed rule makes sense," Dunn wrote. "By aligning the FHA financial reporting requirements with those credit unions are already required to undertake, FHA will permit credit unions to avoid redundant compliance obligations and minimize compliance costs," she said.
"Credit unions currently face substantial regulatory burdens related to mortgage lending in light of the large volume of recently issued regulations coming from regulators with jurisdiction in this area," Dunn added.
For the full comment letter, use the resource link.