Thirteen institutions expected to also undertake loss mitigation efforts focused on foreclosure prevention in OCC/Fed settlement.
Effort addresses rules finalized last month on qualified mortgages, ability to repay.
Both NCUA Chairman Debbie Matz and Consumer Financial Protection Bureau Director Richard Cordray revealed developments in ongoing regulatory issues during a Feb. 5 webinar in which both answered questions from their credit union audience.
The Consumer Financial Protection Bureau released final mortgage rules that restrict loan originator compensation methods and increase the level of service loan servicers must provide to borrowers. However, due to the way credit unions already do business, trade associations say neither rule will have a major impact on the industry.
Because credit unions don’t typically pay for more profitable terms, the rule isn’t expected to have a major impact on the industry.
Originators also can't be paid more for pushing higher interest rates, selling title insurance. Criminal background checks also required.
Lenders may still recover the cost of obtaining the appraisal, but not for providing a copy to the borrower.
CFPB final mortgage servicing rule hits slightly more than 200 of 6,900 federally insured credit unions.
The CFPB released a summary of its final mortgage servicing rules early Thursday.
Comments from credit unions express concerns about rates, compliance burden as January effective date approaches.