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December 10, 2013

House Missouri members urge mortgage rules delay

Dec. 11, 2013 – House members representing the state of Missouri, noting concerns raised by credit unions, wrote CFPB Director Richard Cordray Tuesday urging him to extend the implementation period for mortgage rules currently set to take effect in January.

The letter was signed by Missouri Republican Reps. Blaine Luetkemeyer, Ann Wagner, Vicky Hartzler, Jason Smith, Billy Long and Sam Graves. They wrote, "Banks and credit unions in our districts have expressed to us their serious concern that it will be impossible for them to assure that the necessary software updates and other compliance efforts are in place by the current deadline."

The lawmakers also said banks and credit unions are concerned they won't be able to lend until they are in compliance with these new rules. "Ultimately, we fear that consumers and borrowers could ultimately pay the price in limited credit and difficulty obtaining home mortgages." They requested that Cordray extend the implementation of these rules until Jan. 1, 2015.

NAFCU, the only financial services trade association to oppose credit unions of any size being placed under direct CFPB regulatory authority, has specifically urged the bureau for at least a one-year delay on implementation of the ability-to-repay/qualified mortgage rule to give credit unions more time to comply.