NAFCU backs bill on ‘rural’ designation for QM
March 13, 2014 – NAFCU lobbyists will closely monitor today’s House Financial Services Committee mark-up of several pieces of legislation, including a bill to create a petition process to ensure “rural” designations in connection with some qualified mortgage lending.
H.R. 2672, introduced by Rep. Andy Barr, R-Ky., would be helpful to small creditors, including credit unions, offering mortgages with balloon-payment features in underserved areas. The bill would help these lenders satisfy all the “ability to repay” requirements of CFPB’s ability-to-repay/QM rule.
Brad Thaler, NAFCU’s vice president of legislative affairs, said in a letter last night to Barr that H.R. 2672 would make the process for obtaining a rural designation fairer and more transparent. He also thanked Barr for his cosponsorship of H.R. 3211, the “Mortgage Choice Act,” which would clarify the definition of points and fees under the Truth in Lending Act and is applicable in the QM rule.
Earlier this week, NAFCU wrote to the committee in conjunction with today’s mark-up urging support for H.R. 719, the “Capital Access for Small Businesses and Jobs Act,” introduced by Reps. Peter King, R-N.Y., and Brad Sherman, D-Calif. It said today’s mark-up could serve as an opportunity to advance this proposal if the panel so desired.
HR. 719, which would allow federal credit unions to receive payments on eligible uninsured, non-share capital accounts, is reflect in NAFCU's five-point plan for credit union regulatory relief.
The panel today is also slated to mark up H.R. 3584, the “Capital Access for Small Community Financial Institutions Act.” This bill would give credit unions that have only private share insurance access to membership in the Federal Home Loan Banks.
NAFCU's five-point plan for CU regulatory relief