WASHINGTON–America’s Credit Unions and four other financial services trade groups are urging the Consumer Financial Protection Bureau to pursue targeted mortgage regulatory reforms tied to President Donald Trump’s March 13 executive order aimed at expanding access to mortgage credit, according to a joint letter sent to CFPB Acting Director Russell Vought.
According to the letter, which in addition to America’s Credit Unions also includes the American Bankers Association, Consumer Bankers Association, Housing Policy Council and Mortgage Bankers Associationas signatories, the CFPB to prioritize reforms related to Home Mortgage Disclosure Act reporting requirements and rules governing Ability-to-Repay and Qualified Mortgage standards, which the organizations said have increased mortgage origination and servicing costs without providing comparable consumer benefits.
The organizations said President Trump’s executive order directs the CFPB to modernize HMDA reporting requirements and consider amendments to ATR/QM requirements to reduce unnecessary origination costs and expand access to affordable and sustainable mortgage credit.
‘Prepared to Work With the Bureau’
The groups told the CFPB they support efforts to modernize regulations implemented under the Dodd-Frank Act and said they are prepared to work with the Bureau and policymakers to advance housing affordability, sustainable homeownership, community bank and credit union lending, and a resilient housing finance system.
The organizations also urged the bureau to complete pending rulemakings before advancing broader proposals, citing the “technical and operational complexity” of regulatory change. The groups specifically voiced support for advancing proposed Regulation X servicing amendments while considering comments submitted by industry participants and other stakeholders.
Three Areas of Action Recommended
The letter called on the CFPB to prioritize three areas:
- Modernize Loan Originator Compensation (Regulation Z).
- Reform TRID Tolerances, Cure Provisions and Timing Requirements (Reg Z).
- Update HMDA Reporting Thresholds (Regulation C).
