Newsroom

April 24, 2012

4 CU reps in CFPB review panel meeting

April 24, 2012 – Representatives from four NAFCU-member credit unions are due to participate in the Consumer Financial Protection Bureau's Small Business Review Panel meeting today on the bureau's mortgage servicing rulemaking initiative.

The NAFCU member representatives will be participating solely for the purpose of offering the credit union viewpoint on the rulemaking initiative. They are:

  • Tiffany Michel, vice president of lending at Omaha Police FCU (Omaha, Neb.);
  • David Wright, president/CEO of Services Center FCU (Yankton, S.D.);
  • Victor Petroni, senior vice president of lending at First New England FCU (East Hartford, Conn.); and
  • Christine Wiley, president/CEO of Rocky Mountain Law Enforcement FCU (Denver).

The CFPB hasn't issued its proposed rule for mortgage servicers yet; it's required to consider its impact on small entities first. However, the bureau has released the key elements it expects to include. They are:

  • clear monthly mortgage statements;
  • warning before interest rate adjustments;
  • options for consumers to avoid "force-placed" insurance;
  • early information and options for avoiding foreclosure;
  • immediate crediting of loan payments;
  • up-to-date, accessible records;
  • quick error resolution;
  • direct, ongoing access to the servicer's foreclosure prevention team.

In announcing its plans, the CFPB released a fact sheet, an outline of the proposals the review panel will discuss and a set of questions on which the bureau will seek input.

The CFPB plans to issue its final rule by Jan. 21, 2013, and may allow an implementation period of up to one year.