NAFCU Urges Changes on Financial Overhaul
NAFCU is asking Congress for more transition time, an adjustment of certain thresholds for inflation and clarification of the mortgage rules.
Those are among the modifications to the regulatory overhaul passed this summer that NAFCU outlined in a letter to lawmakers last week.
Because the bill creates "an overwhelming number of new compliance burdens" for credit unions, Congress should postpone the implementation date for certain provisions until the summer of 2012, NAFCU President/CEO Fred Becker wrote.
He also recommended that lawmakers be more specific in instructing the Federal Reserve about what it should take into consideration when regulating interchange fees.
Becker also said that because of inflation more credit unions will find their assets exceeding $10 billion, which will cause them to be subject to supervision of the new consumer agency. Lawmakers should require that the monetary thresholds be adjusted for inflation, he said.
The letter also calls for Congress to mandate a combined mortgage rule to avoid confusion about the mortgage disclosure process; clarify what access the new consumer agency has to financial reports issued by the NCUA and other regulators as part of the reexamination process; and lower the penalties for violations of the rules mandating that credit unions and other financial institutions report appraisers who violate applicable codes and laws.
Lawmakers haven't said when they will take up legislation to make changes to the financial overhaul bill. It could happen in the post-election session or next year.