WASHINGTON—BCFP Acting Director Mick Mulvaney received a list of recommended regulatory actions from NAFCU President and CEO Dan Berger last week.
Berger hand-delivered the letter to Mulvaney saying the regulatory actions are needed in light of the recent enactment of the Economic Growth, Regulatory Relief, and Consumer Protection Act (S. 2155).
These actions would provide credit unions with much-needed clarity and certainty regarding the compliance impact of S. 2155's provisions, Berger explained.
Changes highlighted by Berger concern: the Truth in Lending Act (TILA), the Home Mortgage Disclosure Act (HMDA) and the Fair Credit Reporting Act (FCRA). Berger detailed each change in a section-by-section analysis in his letter.
"As the Bureau crafts its interpretation of the Act's provisions, it should ensure that any new conforming regulations account for the unique nature of credit unions and do not impose undue burden on the industry," he wrote.
The Recommendations Include
More specifically, Berger's suggestions include that the Bureau:
- Issue guidance to credit unions that expands upon the law's qualifications for the addition of minimum standards for residential mortgage loans in TILA
- Amend its transactional thresholds under Regulation C to achieve parity with the exemption contained in law's HMDA adjustment and study
- Provide additional information on the escrow requirements in S. 2155 relating to certain consumer credit transactions in TILA
- Apply the "no wait for lower mortgage rates" provision that S. 2155 added to TILA to all residential mortgage loans
- Make additional rulemakings, as necessary, to amend Regulation V to conform to the law's "protecting consumers' credit" and "protecting veterans' credit" changes added to the FCRA
- Provide credit unions with the training criteria necessary to comply with the requirements of S. 2155 regarding the disclosure of financial exploitation of senior citizens
- Implement regulations and guidance so credit unions are informed of the regulatory expectations of the law's property assessed clean energy financing changes
- Issue guidance to clarify what constitutes a "reasonable timeframe" under the law regarding various protections in the event of death or bankruptcy of a student loan borrower or cosigner