WASHINGTON (12/3/13)--In a letter cosigned by 25 Senate colleagues, Sen. Roger Wicker (R-Miss.) called on the Consumer Financial Protection Bureau to hear the concerns of credit unions and other small institutions and "consider providing appropriate relief" from pending mortgage regulations, "including deferring implementation."
The letter, which was sent to CFPB Director Richard Cordray before the Thanksgiving congressional break, addresses the Consumer Financial Protection Bureau's six rules for mortgage products and services. The rules, which are required by the Dodd-Frank Act, are set to go into effect in January 2014 and include the bureau's Ability-to-Repay and Qualified Mortgage standards.
Credit Union National Association concerns are reflected in the letter, although the senators did not specify a time period for an implementation delay. CUNA has suggested that Congress grant a one-year extension of compliance deadlines for the pending CFPB mortgage rules. If such a delay cannot be created, Congress should provide credit unions with a buffer of at least six months as they work to come into compliance with qualified mortgage standards, CUNA has said. CUNA has also recommended that a similar six-month delay should also be applied to legal liability provisions of mortgage regulations.
The senators in the letter noted their constituents "are concerned that they will be hard pressed to come into compliance with the significant changes called for under these rules by the current deadline."
Compliance with these changes "will prove daunting" for small financial institutions with few compliance officers, and many institutions will not have appropriate software in place as of January 2014, the senators added.
Failure to comply with the pending regulations "could lead to market distortions" which could "adversely affect the availability of mortgage credit for consumers" in several states, particularly in rural or remote areas of the country, the legislators added.
For the full letter, use the resource link.