Newsroom
March 04, 2015
'Stop and study' in new bill would slow final RBC2
NAFCU-sought legislation introduced today by House Financial Services Subcommittee Chairman Blaine Luetkemeyer, R-Mo., would require NCUA to conduct a study on mortgage servicing assets and report to Congress within one year.
The study, if enacted, will afford NCUA additional time to truly analyze the impact of RBC2 on credit unions' mortgage servicing assets before moving forward with a flawed rule.
Luetkemeyer's bill, titled the "Community Lending Enhancement and Regulatory Relief Act of 2015," would direct NCUA to look at risk associated with mortgage servicing assets, the history of the market (particularly during the financial crisis), regulatory approaches to addressing related risk other than through capital and more.
Luetkemeyer, who chairs the House Financial Services Subcommittee on Housing and Insurance, introduced similar legislation last Congress. This version, however, provides NAFCU-sought parity for credit unions in its proposed study.
NAFCU Senior Vice President of Government Affairs and General Counsel Carrie Hunt thanked Luetkemeyer for incorporating parity for credit unions in today's bill.
"We appreciate Chairman Luetkemeyer's leadership in pressing for added regulatory relief and for working to ensure credit unions parity with other institutions with respect to capital requirements," Hunt said. "This bill would promote much-needed transparency, require a thorough analysis of RBC2's impact on mortgage servicing assets and encourage NCUA to take more time to consider the full impact of its capital rules."
Other provisions of the bill would give statutory relief regarding privacy notices; waive escrow mandates for mortgage loans held in portfolio; provide an exemption from independent appraisals for loans of $250,000 or less held in portfolio; and give a QM safe harbor for all loans held in portfolio.
The study, if enacted, will afford NCUA additional time to truly analyze the impact of RBC2 on credit unions' mortgage servicing assets before moving forward with a flawed rule.
Luetkemeyer's bill, titled the "Community Lending Enhancement and Regulatory Relief Act of 2015," would direct NCUA to look at risk associated with mortgage servicing assets, the history of the market (particularly during the financial crisis), regulatory approaches to addressing related risk other than through capital and more.
Luetkemeyer, who chairs the House Financial Services Subcommittee on Housing and Insurance, introduced similar legislation last Congress. This version, however, provides NAFCU-sought parity for credit unions in its proposed study.
NAFCU Senior Vice President of Government Affairs and General Counsel Carrie Hunt thanked Luetkemeyer for incorporating parity for credit unions in today's bill.
"We appreciate Chairman Luetkemeyer's leadership in pressing for added regulatory relief and for working to ensure credit unions parity with other institutions with respect to capital requirements," Hunt said. "This bill would promote much-needed transparency, require a thorough analysis of RBC2's impact on mortgage servicing assets and encourage NCUA to take more time to consider the full impact of its capital rules."
Other provisions of the bill would give statutory relief regarding privacy notices; waive escrow mandates for mortgage loans held in portfolio; provide an exemption from independent appraisals for loans of $250,000 or less held in portfolio; and give a QM safe harbor for all loans held in portfolio.
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