WASHINGTON—The unintended consequences to credit unions from “junk fee” legislation continues to concern America’s Credit Unions.
As CUToday.info has extensively reported, the CFPB has been zeroing in on overdraft fees and has also enacted a final rule that caps late fees on credit cards for issuers with more than one-million active accounts.
“The president has called on the CFPB to investigate closing costs and have classified many closing costs as junk fees,” said America’s Credit Unions Chief Advocacy Officer Carrie Hunt. “The classification of legitimate business fees as junk fees has been a huge concern for America's Credit Unions due to the unintended consequences of what that reduction in income does to credit unions, relative to their entire business plans.”
Concerns Over New Mortgage Scrutiny
ACU said it is concerned that mortgage closing costs may come under scrutiny from the Biden Administration. As CUToday.info reports separately, the Bureau has confirmed it plans similar scrutiny in that area.
“President Biden laid out his affordable housing priorities in his address to the nation, one that credit unions welcome,” Hunt said. “The cooperative structure allows credit unions to fit the needs of the communities they service and offer a hand up when times are tough. However, America’s Credit Unions is paying close attention to the CFPB labeling house closing costs as ‘junk fees,' and will weigh in on this characterization. Uncertainty in mortgage lending is extremely disruptive and can have tremendous harm on the availability of credit.”
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