July 22, 2022

NAFCU Reg Alert seeks feedback on FHFA’s RFI on fintechs

Reg AlertNAFCU sent members a Regulatory Alert Thursday on the Federal Housing Finance Agency’s (FHFA) request for information (RFI) seeking public input on the role of technology in housing finance to gain a broader understanding of the level of innovation throughout the mortgage lifecycle. 

In the Regulatory Alert, NAFCU highlights:

  • the FHFA interprets fintech in the mortgage space as the application of new technologies and digital processes to all aspects of mortgage financing;
  • housing fintech institutions include established as well as startup entities;
  • fintech has the potential to increase opportunities and reduce unnecessary barriers to create a fairer mortgage finance system; and
  • the FHFA also established its Office of Financial Technology which will serve as a source of information to support the FHFA in assessing risks of emerging fintechs.

NAFCU has long supported innovation in the financial marketplace and a level playing field between credit unions and other non-bank entities. 

“Appropriate oversight and a clear understanding of potential risks regarding fintech mortgage lending is an important part of cultivating an innovative and competitive financial marketplace,” stated NAFCU Vice President of Regulatory Affairs Ann Petros. “NAFCU supports credit union/fintech partnerships but also encourages the FHFA to thoroughly examine the risks that underregulated housing finance fintechs, including both well-established firms and startups, pose to consumers and the entire housing finance system.”

Comments in response to the RFI are due to NAFCU September 30 and can be submitted through the alert; comments are due to the FHFA October 16. Subscribe to receive Regulatory Alerts in your inbox.