ARLINGTON, Va.—NAFCU Monday sent a letter to the CFPB urging the Bureau to mitigate the regulatory burden of its Home Mortgage Disclosure Act rule on credit unions by revising the rule’s resubmission guidelines.
In the letter, signed by NAFCU Regulatory Affairs Counsel Alexander Monterrubio, NAFCU recommended increasing the error percentage thresholds that trigger the HMDA data resubmission requirement and creating a safe harbor for lenders reporting a low-volume of entries on their loan/applicant registers, or LARs. Monterrubio also recommended improving the submission process overall and developing stronger procedures to protect sensitive borrower information.
“NAFCU remains concerned that the tidal wave of regulation related to mortgage lending has significantly altered the market in unintended ways," he wrote. "The HMDA final rule has undeniably required credit unions to revise their mortgage origination and servicing operations, setting off a chain of high-cost and time-intensive system upgrades.”