Missouri Federal Lawmakers Urge CFPB to Delay Mortgage Rule Implementation
Six Missouri U.S. House members, along with U.S. Senator Roy Blunt (R), have signed on to letters urging the Consumer Financial Protection Bureau (CFPB) to delay implementation of new mortgage rules. The rules are set to take effect January 2014.
U.S. Reps. Ann Wagner (R-District 2), Blaine Luetkemeyer (R-District 3), Vicky Hartzler (R-District 4), Sam Graves (R-District 6), Billy Long (R-District 7) and Jason Smith (R-District 8) sent a letter to the CFPB on December 10. U.S. Sen. Blunt was one of 26 U.S. senators who signed onto a November 21 letter. The Missouri Credit Union Association worked with the Missouri Congressional delegation to ensure credit union concerns and impact were reflected in the letter.
"We greatly appreciate the efforts of legislators and their staff to include all affected financial institutions, including credit unions, in this letter to the CFPB," says Amy McLard, senior vice president of Advocacy with the Missouri Credit Union Association. "Legislative support on this issue is very important, and it is clear that members of the Missouri delegation understand our concerns."
Resulting from the Dodd-Frank Wall Street Reform and Consumer Protection Act, the CFPB issued seven mortgage-related rules in January 2013, each with an effective date of January 2014.
The Missouri delegation letter to the CFPB reads in part, “Banks and credit unions in our districts have expressed to us their serious concern that it will be impossible for them to assure that the necessary software updates and other compliance efforts are in place by the current deadline….Ultimately, we fear that consumers and borrowers could ultimately pay the price in limited credit and difficulty obtaining home mortgages.”
While the Senate letter does not request an exact day for delay, the Missouri letter asks the CFPB to extend the implementation date until January 1, 2015.
For additional information regarding the mortgage lending rules, please visit the CUNA website by clicking here (sign-in required), or contact Missouri Credit Union Association’s compliance department at 800-446-3620.