ARLINGTON, Va.–NAFCU has sent a letter to the Senate today in advance of a hearing at which a credit union CEO will be among those testifying.
NAFCU Senior Vice President of Government Affairs and General Counsel Carrie Hunt's letter to Senate Banking Subcommittee on Financial Institutions and Consumer Protection Chairman Patrick Toomey (R-PA) and Ranking Member Jeff Merkley (D-OR) was sent in response to the hearing, “The State of Rural Banking: Challenges and Consequences.”
Carrie Wood, president and CEO of Timberland FCU in Dubois, Penn., will be among those addressing the hearing in the Dirksen Senate Office Building.
In her letter, Hunt notes the limitations within National Credit Union Administration regulations and writes that more could be done to expand the agency’s definition of rural districts.
“NAFCU believes a more flexible definition of a rural district would increase availability of financial services to rural communities that might otherwise not have access to financial services,” Hunt stated.
Hunt also addressed regulatory burdens, specifically the new mortgage lending regulations issued by the Consumer Financial Protection Bureau.
"In particular, the Qualified Mortgage (QM) rule creates significant obstacles to providing rural communities with the mortgage lending they need,” the letter states.
Hunt also noted "the current method used by the CFPB to recognize rural areas does not always accurately identify all the rural areas across our nation."