Rep. Blaine Luetkemeyer (R-Mo.) has introduced a bill that would provide the NCUA with more time to assess the impact of the revised risk-based capital proposal on mortgage servicing assets.
Part of the “Community Lending Enhancement and Regulatory Relief Act of 2015” requires the NCUA to conduct a mortgage servicing assets study and report back to Congress within one year.
NAFCU said in a press release that the bill would specifically direct the NCUA to examine the history of the market, the risk associated with mortgage servicing assets and regulatory approaches to addressing related risk other than through capital.
Luetkemeyer, chairman of the House Financial Services Subcommittee on Housing and Insurance, introduced similar legislation in the last session of Congress but the required study now includes the NCUA.
According to NAFCU, the bill would also provide credit unions with statutory relief regarding privacy notices, waive escrow mandates for mortgage loans held in portfolio and give a QM safe harbor for all loans held in portfolio.
“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,” NAFCU Senior Vice President of Government Affairs and General Counsel Carrie 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.”
CUNA President/CEO Jim Nussle said the legislation is a good first step toward meaningful regulatory relief for credit unions and other community based financial institutions.
“We look forward to working with you on ways to further regulatory relief for community based financial institutions,” Nussle wrote to Luetkemeyer.
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