Posts Tagged ‘national credit union administration’

Government Accountability Office Evaluates Dodd-Frank Act Effects

January 5th, 2016 Comments off

government accountability office--wikipediaAccording to a report released by the Government Accountability Office (GAO), as nationalmortgagenews tells MHProNews, the Dodd-Frank Act is expected to have a $100 million impact on the bottom lines of community banks and credit unions in the form of higher expenses and forgone revenues. Regulators continue to verify actual costs.

The full impact of the Dodd-Frank Act remains uncertain because many of its rules have yet to be implemented and insufficient time has passed to evaluate others,” the GAO said.

Regulators told us that it is still too early to assess the full impact of Dodd-Frank Act rulemakings on community banks and credit unions, and while they have heard concerns about the increase in compliance burden, they have not been able to quantify compliance costs.”

Particular rules in Dodd-Frank created an increased compliance burden, especially in smaller lending institutions. Fears about loans that are not qualified mortgages have led to reduced loan activities lest the lender face litigation or the inability to sell those loans to secondary markets.

While the GAO acknowledged there were some initial contractions of credit availability, trade groups see this as the need for more regulatory relief from Congress. Today’s GAO report confirms that Dodd-Frank regulations have increased compliance burdens on credit unions,” Dan Berger, president and chief executive of the National Association of Federal Credit Unions, said.

Meanwhile, the National Credit Union Administration (NCUA), the only federal financial regulator to leave a comment, said it would like to see the differences between banks and credit unions in a more detailed analysis.

The appropriate indicators to use in assessing the effects of the Dodd-Frank Act may be different for very small institutions – where most of the credit unions are clustered – than they are for larger institutions,” said the NCUA’s Executive Director Mark Treichel, in a response letter. “Using a set of indicators better-calibrated to the business models may be more helpful in assessing the effects of the Dodd-Frank Act.”

The GAO, noting that the indicators they developed were reasonable, stated, “While we presented similar indicators for banks and credit unions, comparisons between the two types of institutions may not be appropriate and that certain indicators may be more relevant than others for each type of institution.”

The GAO is required to present an annual report on the effects of the Dodd-Frank Act on community banks and credit unions, the impact on financial market stability, and how federal regulators implemented the rules. ##

Distinguished Speaker Line-up Set for Credit Union Congressional Caucus

September 4th, 2015 Comments off

natio_asoc_fed_credit_unio_nafcuThe National Association of Federal Credit Unions (NAFCU) Congressional Caucus is the association’s credit union lobbying event of the year, bringing hundreds of credit union representatives from all across the country to meet with lawmakers and earn about legislation that may affect them and their members.

The Congressional Caucus sponsors include Triad Financial Services, NAFCU Services Corporation, MasterCard, CUNA Mutual Group, FHLBank Atlanta and Geezeo, as cuinsight informs MHProNews.

Speakers for the event, set for Sept. 14-17, 2015 in Washington, include Sen. David Vitter, (D-LA), a member of the Senate Banking Committee and chairman of the Small Business and Entrepreneurship Committee; Rep. James Clyburn (D-SC), assistant democratic leader of the House; Rep. William Lacy Clay, (D-MO) a senior member of the House Financial Services Committee and the ranking member on the Financial Institutions and Consumer Credit Subcommittee; Rep. Krysten Sinema, (D-AZ), a member of the House Financial Services Committee and lead democratic co-sponsor of NAFCU-backed H.R. 2287, the “National Credit Union Administration Budget Transparency Act,” and National Credit Union Administration (NCUA) Director of the Office of Consumer Protection Gail Laster.

In addition speakers will also include Rep. Patrick McHenry, (R-NC), the U.S. House Chief Deputy Majority Whip and vice chairman of the House Financial Services Committee; and Maria Contreras-Sweet, administrator of the Small Business Administration. ##

(Image credit: National Association of Federal Credit Unions)

Article submitted by Matthew J. Silver to Daily Business News-MHProNews.matthew-silver-daily-business-news-mhpronews-com

CFPB Director Cordray Explains Changes to QM Rules and How He Obtained a Black Eye

February 12th, 2015 Comments off

cfpb-director-richard-cordrayOn January 29, the CFPB proposed raising the threshold for small and rural lenders. This action will allow more institutions to make qualified mortgage loans without having to meet certain requirements required of larger lenders.

At a town hall meeting organized by the National Credit Union Administration on Tuesday, February 10, Consumer Financial Protection Bureau Director Richard Cordray discussed the new changes coming up. He revealed that the decision to ease qualified mortgage restrictions for small and rural lenders had caused some internal disagreements in his organization on how the CFPB should make changes to the QM rule to help smaller institutions.

CFPB Director Richard Cordray and U.S. Rep. Gwen Moore (D-Wis.)

Cordray, who noted that his Ohio home would be considered rural under the plan, said despite the initial internal pushback, he thought the reasoning to expand what qualifies as “rural” was “quite justified.”

National Mortgage News tells MHProNews that Cordray explained that the proposal would cover about 22% of the population. This figure is almost 10 times the initial proposal from the Federal Reserve Board (before rule-writing power was transferred to the CFPB) and up from the 9.9% of the population that the existing rule covers.

“This was a matter of debate within the bureau,” he said, “but I ultimately believed and concluded that we had initially drawn the line too narrowly. I felt that we should allow more latitude to the small creditors to give them some breathing room, maybe some room to grow.”

He added that the agency is working “on debt collection rules, overdraft, and a variety of other things.”

As for the shiner under his left eye, Cordray kicked off the session by explaining that he sustained the temporary black eye at a basketball game. ##

(Photo Credit: Rep. Gwen Moore / Twitter)



Article submitted by Sandra Lane to – Daily Business News – MHProNews.

Non-QM Loans Can Be OK

December 13th, 2013 Comments off

Federal regulators are telling their examiners to overlook non-qualified mortgage loans as long as they are underwritten well, according to what tells MHProNews. The joint statement from the Federal Reserve Board, the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corp. (FDIC) and the National Credit Union Administration (NCUA) informs lenders they should consider their business strategy and risk appetite as more important than whether the loan qualifies for QM status or not. The joint statement says, “Regardless of whether residential mortgage loans are QMs or non-QMs, the agencies continue to expect institutions to underwrite residential mortgage loans in a prudent fashion and address key risk areas in their residential mortgage lending, including loan terms, borrower qualification standards, loan-to-value limits, and documentation requirements.” The Department of Housing and Urban Development (HUD) has issued its own QM rule for FHA loans which takes effect Jan. 10.

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