ALEXANDRIA, Va.—A highway funding bill cleared by the House Wednesday would create new requirements for mortgage reporting to the Internal Revenue Service—and add to the regulatory burden of CUs, NAFCU contends.
NAFCU has urged that lawmakers reconsider this provision as the larger bill moves forward, sending a letter House Ways and Means Committee leaders in advance of their meeting Wednesday, warning of the negative impact on credit unions of the proposed new reporting.
The “Highway and Transportation Funding Act of 2015,” H.R. 3038, was approved by the House yesterday by a vote of 312-119 and includes about $8 billion in revenue offsets. Among them is a provision requiring lenders to report more information on outstanding mortgages to IRS. The bill’s authors said this new requirement would generate an estimated $1.81 billion in savings by reducing inaccurate reporting.
NAFCU Vice President of Legislative Affairs Brad Thaler wrote that credit unions already face “a nearly insurmountable level of regulatory burden today . . . NAFCU remains hopeful that Congress will reconsider this particular provision moving forward.”
CUNA President and CEO Jim Nussle also sent a letter to the Committee Wednesday, noting this new reporting requirement “would add to an already staggering level of regulatory requirements while providing absolutely no benefit to the credit union members. We urge you to strip the provision from the bill.”