August 24, 2014

NAFCU engaged with CFPB on mortgage, overdraft, prepaid

Aug. 12, 2014 – NAFCU is continuing a dialogue with CFPB in an effort to ease the pressure on several regulatory pain points for its members, including mortgage rules, remittances and two other areas where CFPB has held out the possibility of future rulemaking: overdraft services and prepaid cards.

These and other efforts are all part of NAFCU's ongoing work to win regulatory relief from unnecessary and overly burdensome rules.

"We are receiving input regularly from our members on the regulatory burdens that are affecting them most, and CFPB's rules on mortgage lending and remittances continue to get top billing," said Mike Coleman, NAFCU's director of regulatory affairs. "Our regulatory affairs team has maintained ongoing contact with CFPB on these two issues and more, including concerns about activities that are not yet addressed in CFPB rulemaking but are expected to be addressed in coming months."

Coleman noted, for example, that NAFCU met recently with CFPB staff to discuss the bureau's work on prepaid cards, which has been on the bureau's regulatory to-do list for the past couple of years. NAFCU staff have also met with bureau representatives on current and proposed mortgage rules as well as credit unions' continued concerns about their ability to provide remittances to their members under a rule that still makes it costly to offer the service on an ad hoc basis.

He said NAFCU is also engaged with the bureau on overdraft services. Just last week, the bureau released a report on overdraft services at large banks and reiterated it was still considering the large question of future rulemaking for this activity.

NAFCU is meanwhile preparing a Regulatory Alert for its members on CFPB's proposal to revise reporting rules under the Home Mortgage Disclosure Act. The proposed rule would increase the number of data points that must be addressed in the yearly mortgage/loan application registers that are filed with regulators.