NAFCU Seeks to Relax Mortgage Rules
NAFCU has written a letter to the NCUA asking the agency to ease some of its regulations surrounding the registration of mortgage originators.
The regulations flow from the Secure and Fare Enforcement for Mortgage Licensing Act. The law seeks to more clearly and closely identify mortgage originators and had elements that were supposed to go into effect Oct. 1.
But the association pointed out that a key element required to comply with the law, the Nationwide Mortgage Licensing System and Registry, is not yet in place.
"Chief among the reasons for the difficulties our members are facing is the fact that the Registry is not operational and will not be until at least January of 2011." the association wrote.
The association also asked that NCUA reconsider making CU directors register as mortgage originators. NAFCU pointed out that CU directors do not generally take mortgage applications or offer mortgages for compensation or gain.
NAFCU also asked that the NCUA and the other agencies reconsider the large amount of personal information, including fingerprints sent to the Federal Bureau of Investigation, required for registration.
"NCUA and the other agencies that jointly issued the final rule used their discretion to implement these provisions in a manner that would require submission of extensive personal information, including Social Security numbers, dates of birth, and even home addresses. NAFCU strongly urges NCUA and the agencies to reconsider the vast list of personal information required to be submitted as any breach of the registry database would gravely impact potentially thousands of credit union employees and their families," the association wrote.