House Committee Considers Reg Relief Bills
The House Financial Services Committee is scheduled to mark up credit union regulatory relief bills on Wednesday.
First, the committee will consider the Eliminate Privacy Notice Confusion Act, which would simplify current privacy notification requirements for financial institutions.
“NAFCU has long urged lawmakers to ease the yearly privacy notice disclosures for credit unions and other financial institutions under the Gramm-Leach-Bliley Act,” Chad Adams, NAFCU associate director of legislative affairs, said. “We applaud Rep. Luetkemeyer (R-Mo.), Rep. Sherman (D-Calif.) and their staffs for pushing to remove the need for redundant, burdensome notice disclosures, which is a key element of NAFCU’s five-point plan for credit union regulatory relief.”
CUNA has estimated that since 2001, credit unions have sent more than one billion annual privacy notifications to their members.
The Mortgage Choice Act of 2015 is also slated for consideration on Wednesday.
The bill, which did not make it out of the Senate in the last session of Congress, would adjust the definition of points and fees under the Truth in Lending Act as applied in the CFPB's qualified mortgage rule.
The legislation excludes the amount of any loan level price adjustment payment set by Fannie Mae, Freddie Mac, the FHA or a similar government entity from the computation of the points and fees.
According to the Congressional Research Service summary of the bill, the exclusion would also apply to any compensation paid by a mortgage originator or a creditor to an individual employed by the mortgage originator or creditor, and any escrow for future payment of insurance.
The committee is also scheduled to mark up the Mortgage Servicing Asset Capital Requirements Act of 2015, which 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 legislation requires the NCUA to conduct a mortgage servicing assets study and report back to Congress within one year.
Another bill on the agenda is the Bureau Advisory Commission Transparency Act. This legislation clarifies that the Federal Advisory Committee Act applies to the CFPB, therefore opening the bureau’s advisory board meetings to the public. The CFPB has established the Credit Union Advisory Council, which meets four times a year.
“We feel these meetings should be open to public observation as they provide an important forum for credit union representatives to share concerns and provide practical guidance to the agency on operational and public policy issues,” CUNA President/CEO Jim Nussle said in a letter of support for the bill.
In addition, the committee plans to mark up the Community Institution Mortgage Relief Act of 2015. Under the bill, the CFPB would have to adjust requirements related to servicing mortgage loans and administering escrow amounts or make them exempt. The change would apply to mortgage servicers that service 20,000 or fewer mortgage loans annually.
“They [the bills] all would help what we have dubbed the crisis of creeping complexity,” CUNA Chief Advocacy Officer Ryan Donovan said. “They are small steps in the right direction.”