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NAFCU discusses mortgage lending, forbearances with CFPB
Members of NAFCU's Regulatory Affairs team Monday shared credit union concerns and issues related to mortgage servicing, forbearances, and periodic statements with the CFPB. NAFCU previously spoke with CFPB Director Kathy Kraninger to reiterate credit unions' need for regulatory relief amid the coronavirus.
Under the CARES Act, borrowers are able to request forbearance on single-family and multifamily loans sold to the government-sponsored enterprises (GSEs). However, the legislation does not provide relief for mortgage servicers.
The CFPB has indicated through guidance that it is focused on making it easier for mortgage servicers to offer forbearance plans quickly and give servicers reasonable flexibility to use their resources to support consumers. NAFCU has shared concerns about increased forbearance requests negatively impacting credit unions with the Federal Housing Finance Agency and continues to work with regulators to obtain relief.
During Monday's conversation, the group also discussed the CFPB's approach to examinations and supervision for compliance with mortgage servicing rules and the recently released guidance regarding implementation of the CARES Act.
The bureau has taken several steps in the midst of the coronavirus pandemic to support financial institutions and consumers affected, including providing some relief related to remittances and reporting under the Home Mortgage Disclosure Act and Regulation C, and guidance on credit reporting requirements.
The association also has several resources available online to assist credit unions, including an updated summary table of regulator actions, detailing actions taken by agencies to provide guidance and relief to financial institutions.
As the industry's Washington Watchdog, NAFCU will continue to work with the CFPB and other regulators to ensure a regulatory environment that allows credit unions to serve their members throughout coronavirus relief efforts.