ARLINGTON, Va.—On a seasonally-adjusted basis, overall consumer prices rose 0.6% in March, with the Bureau of Labor Statistics reporting the overall consumer price index (CPI) grew 2.6% over the 12-month period.
NAFCU Chief Economist and Vice President of Research Curt Long noted that the "dramatic" year-over-year jump is primarily a base effect due to the year-ago collapse in prices.
"The underlying growth trend remains near the Federal Reserve’s target," said Long. "The Fed expects a transitory rise in inflation over the near-term, but for inflation expectations to remain anchored near its target. Unless inflation far exceeds the Fed’s target over a prolonged period, NAFCU does not anticipate a rate hike until at least 2023.”
Energy prices rose 5% during the month, following a 3.9% increase in February. From a year ago, energy prices were up 13.2%. Additionally, food prices climbed 0.1% in March and are up 3.5% compared to this time last year.
Core prices (excluding food and energy costs) rose 0.3% compared to February. Year-over-year core CPI growth was 1.6%, Long said.
Letter to CFPB on Mortgage Servicing Proposal
Separately, the effects on credit unions from the CFPB's proposed mortgage servicing changes related to borrowers affected by the coronavirus pandemic under the Real Estate Settlement Procedures Act (RESPA), or Regulation X have been outlined in a new letter from NAFCU.
As CUToday.info reported, the Bureau issued its proposal earlier this month, saying it is seeking preempt an expected wave of foreclosures once relief provisions expire.
As NAFCU noted, the proposed rulemaking would:
- Create a temporary COVID-19 emergency pre-foreclosure review period that would prohibit mortgage servicers from making the first notice or filing required for judicial or non-judicial foreclosure until after Dec. 31, 2021
- Allow streamlined loan modification options to borrowers with COVID-19-related hardships based on an evaluation of an incomplete loan modification, provided certain criteria are met
- Amend the early intervention requirements and requires mortgage servicers to discuss additional COVID-19-related information during live contact with borrowers not in a forbearance program where available options exist, and provide information for those borrowers in a forbearance program at least 30 days before the end of the forbearance program. The proposed early intervention requirements would sunset Aug. 31, 2022
NAFCU said the rulemaking would affect all credit unions that service federally related mortgage loans as defined in Regulation X, though the small servicer exemption would still apply, and could increase costs and keep delinquent loans on books for a longer period of time.