Rep. Blaine Luetkemeyer (R-Mo.) has introduced a billthat would provide the NCUA with more time to assess the impact ofthe revised risk-based capital proposal on mortgage servicing assets.

Part of the “Community Lending Enhancement and Regulatory ReliefAct of 2015” requires the NCUA to conduct a mortgage servicingassets study and report back to Congress within one year.

NAFCU said in a press release that the bill would specificallydirect the NCUA to examine the history of the market, the riskassociated with mortgage servicing assets and regulatory approachesto addressing related risk other than through capital.

Luetkemeyer, chairman of the House Financial ServicesSubcommittee on Housing and Insurance, introduced similarlegislation in the last session of Congress but the required studynow includes the NCUA.

According to NAFCU, the bill would also provide credit unionswith statutory relief regarding privacy notices, waive escrowmandates for mortgage loans held in portfolio and give a QM safeharbor for all loans held in portfolio.

“We appreciate Chairman Luetkemeyer's leadership in pressing foradded regulatory relief and for working to ensure credit unionsparity with other institutions with respect to capitalrequirements,” NAFCU Senior Vice President of Government Affairsand General Counsel Carrie Hunt said. “This bill would promotemuch-needed transparency, require a thorough analysis of RBC2'simpact on mortgage servicing assets and encourage NCUA to take moretime to consider the full impact of its capital rules.”

CUNA President/CEO Jim Nussle said the legislation is a goodfirst step toward meaningful regulatory relief for credit unionsand other community based financial institutions.

“We look forward to working with you on ways to furtherregulatory relief for community based financial institutions,”Nussle wrote to Luetkemeyer.