WASHINGTON-In official comment letters to the Department of Housing and Urban Development (HUD) regarding its recent proposal to simplify the regulations implementing the Real Estate Settlement Procedures Act (RESPA), CUNA and NAFCU charged that the amendments would do just the opposite. “NAFCU supports efforts to simplify and improve the mortgage process,” NAFCU President and CEO Fred Becker wrote. “However, NAFCU believes these proposed changes overall will provide additional burdens and interest rate risk for credit unions that outweigh any attempts to simplify the process for borrowers. The proposed rule, if made final, would have a serious and negative impact on the mortgage industry because it would require lenders to guarantee fees from third party service providers and guarantee rates that are market driven.” According to CUNA’s comment letter from Assistant General Counsel Jeffrey Bloch, the proposed amendments to allow lenders to offer “guaranteed mortgage packages” and rewriting the “good faith estimate” form from one to three pages, will disadvantage smaller credit unions and only serve to confuse borrowers. The guaranteed packages, Bloch wrote, “will likely place small lenders, such as credit unions, at a distinct competitive disadvantage as compared to large financial institutions. Only the large institutions will have the ability to negotiate discount pricing with settlement providers, which can then be passed on to the borrower.” NAFCU also suggested the General Accounting Office study the issue.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2023 ALM Global, LLC. All Rights Reserved.