NAFCU-backed MBL, HMDA measures in Senate reg relief package

Capitol Hill 1

November 14, 2017

Senate Banking Committee Chairman Mike Crapo, R-Idaho, unveiled a bipartisan regulatory relief deal with several Democratic colleagues Monday that includes a NAFCU-backed bill exempting loans for one-to-four-unit, non-owner-occupied dwellings from the credit union member business lending cap (MBL). Another NAFCU-supported provision would provide relief from certain Home Mortgage Disclosure Act (HMDA) disclosure requirements.

"NAFCU thanks Chairman Crapo and his Democratic partners in the Senate for including provisions in this package that would lead to regulatory relief for credit unions," said NAFCU President and CEO Dan Berger. "We look forward to working with members of the Senate Banking Committee, their staff and other senators as this package moves through the legislative process. This bill is a step in the right direction, and we will continue to push for more relief for the industry and its 110 million member-owners."

The NAFCU-supported provisions in the regulatory relief package include:

  • The Credit Union Residential Loan Parity Act, which would allow credit unions to treat loans that qualify for the MBL exemption as residential loans with lower interest rates – similar to how banks make these loans to small businesses.
  • The Home Mortgage Disclosure Adjustment Act, which would exempt depository institutions that have originated fewer than 500 open-end lines of credit and closed-end mortgages in the previous two years from certain HMDA reporting and recordkeeping requirements.

Other NAFCU-supported provisions in Title I of the package would provide credit unions with regulatory relief from mortgage-related requirements, including allowing institutions with less than $10 billion in assets to retain originated mortgages in their portfolios and removing a wait period within the CFPB's TILA/RESPA integrated mortgage disclosure rule when certain conditions are met. Other components of the bill, also backed by NAFCU, would provide a tailored exemption from certain appraisal requirements and an exemption from escrow requirements under TILA for certain loans made by credit unions.

NAFCU is reviewing the regulatory relief package and those provisions pertaining to credit unions.

 

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