Regulators must protect and empower financial cooperatives
Published by: Sean Brown
June 1, 2022 | Government Affairs, Political Action, Regulatory
Providing options and serving members is key to successfully embodying the credit union mission. That is why the League is always advocating for expanded options, resources, and opportunities that would allow Ohio credit unions to truly offer its members a chance at financial freedom. However, just as credit unions are given a chance to offer additional resources to their members, the regulatory scales are quick to even the playing field. Below are examples of the newly expanded authorities being considered for both credit unions and their regulators.
CFPB Supervision on certain nonbanks
The Consumer Financial Protection Bureau (CFPB) recently issued a request for comment related to the CFPB’s supervisory authority over certain nonbank-covered persons based on a risk determination. The League is concerned that this authority, while well-intentioned, could impact many credit union system partners, such as Credit Union Service Organization, service providers, or insurers. The League worked with industry stakeholders and submitted a comment letter encouraging strong regulation on fintech providers, but to do so without harming those already regulated to ensure a more level regulatory playing field.
HUD 40-year mortgage loan extension
Housing and Urban Development (HUD) issued request for comment on a proposed rule to amend the Federal Housing Administration (FHA) insured mortgage term limits. This proposed rule would amend HUD’s current regulation to allow for mortgagees to recast the total unpaid loan for a new term limit of 480 months. The League submitted a comment letter on behalf of Ohio credit unions to emphasize the need for credit union empowerment to drive better service and outcomes for members. Allowing a credit union to further recast FHA insured mortgages provides flexible lending options for members to achieve a lower mortgage payment, a chance to get on their feet, and reach their dreams of homeownership
Reach out and connect with the League’s Director of Regulatory Affairs, Sean Brown, for any questions or concerns regarding either comment opportunity.
Contact Sean Brown for questions or assistance.