ARLINGTON–NAFCU has sent a letter to House Financial Services Committee Chairwoman Maxine Waters (D-CA) and Ranking Member Patrick McHenry (R-NC) in response to efforts by Zillow to enter the mortgage market.
The letter follows a November 2018 announcement by Zillow that it had completed its acquisition of Mortgage Lenders of America, saying it plans to “simplify” the home-buying process.
In the letter NAFCU again calls on lawmakers "to continue to scrutinize the growing fintech sector" to ensure a level playing field between fintechs and regulated financial institutions.
"It is important to note that credit unions do not view fintech companies in adversarial terms," wrote Brad Thaler, NAFCU's vice president of legislative affairs. "…However, credit unions are concerned when unregulated fintech companies exploit supervisory gaps to obtain a competitive advantage in the marketplace. Although non-bank lenders are subject to the enforcement and rulemaking authority of the CFPB, they are not supervised the same way as credit unions or banks."
Thaler also raised concerns around potential data security vulnerabilities in fintechs as they may not be subject to the same cybersecurity examinations credit unions are under the Gramm-Leach-Bliley Act, the letter suggests.
As it has in the past, NAFCU restated its call for Congress to enact a strong national data security standard.