WASHINGTON (8/4/09)--The Credit Union National Association and the National Association of State Credit Union Supervisors (NASCUS) in separate comment letters have asked the Federal Trade Commission (FTC) to exempt state-chartered credit unions from expanded FTC mortgage power that was granted in the 2009 Omnibus Appropriation bill. Both comment letters are responses to the FTC’s recent advance notice of proposed rulemaking (ANPR) which asked whether the FTC should restrict or prohibit some advertising, marketing, loan origination, appraisal, and loan servicing practices related to the mortgage loan process. In the comment letter, CUNA said that while the FTC should continue its rulemaking process as it attempts to address predatory lending and the general mortgage loan process, any rules that are developed “should not be imposed on state-chartered credit unions that are subject to the FTC’s jurisdiction under the FTC Act as credit unions have not been the source of the problems that these rules would address.” Applying these rules to state-chartered CU’s would also “needlessly” subject them to regulatory burdens that create additional compliance costs. CUNA would prefer that the FTC develop rules that “address practices in which either current state or federal law is silent or if an entity is otherwise unsupervised.” CUNA also cautioned against “prohibiting or favoring certain types of loans,” including some types of variable rate mortgage loans. NASCUS mirrored CUNA’s sentiments in a press release, objecting to the rule’s coverage of state-chartered credit unions and adding that the already “highly regulated” state credit unions “would suffer a disparate impact in the marketplace with little offsetting benefit to consumers if only state-charters are subject to this rule.” To see CUNA’s comment letter, use the resource link.