ALEXANDRIA, Va.—NAFCU is asking leaders of the House Financial Services Committee to support legislation that would require NCUA to conduct a study on mortgage servicing assets and report to Congress within one year.
H.R. 1233, the Community Lending Enhancement and Regulatory Relief Act of 2015—introduced by Subcommittee Chairman Blaine Luetkemeyer (R-Mo)—would amend the Gramm-Leach-Bliley Act to exempt from the annual privacy policy notice requirement any financial institution that does not share nonpublic information with unaffiliated third parties and has not changed its policy on the sharing of nonpublic personal information from the previous year.
In a letter to House Financial Services Committee Chairman Jeb Hensarling (R-Texas), and Ranking Member Maxine Waters (D-Calif.), NAFCU Vice President of Legislative Affairs Brad Thaler focused on the inclusion of the bill’s study and report provision that would delay the implementation of NCUA’s proposed risk-based capital regulation as it relates to mortgage servicing assets until an impact study is conducted and alternatives are explored.
"This language would promote much-needed transparency, require a thorough analysis of the proposal’s impact on mortgage servicing assets and encourage NCUA to take more time to consider the full impact of its proposed capital rule," Thaler wrote in his letter.
Other provisions of the bill would give statutory relief regarding privacy notices; waive escrow mandates for mortgage loans held in portfolio; provide an exemption from independent appraisals for loans of $250,000 or less held in portfolio; and give a QM safe harbor for all loans held in portfolio.