A group of 26 senators urged the CFPB late last month to listen to the concerns of small financial institutions and to consider deferring pending mortgage regulations set to take effect in January.
The lawmakers said credit unions and other small financial institutions have voiced concern that they will have difficulty complying with the new rules, which include the ability to repay and qualified mortgage standards on mortgage products and services.
“These proposed new rules and amendments present our nation’s financial institutions with thousands of pages of new regulations with which they must comply by January 2014,” the lawmakers said in the letter. “Our constituents advise that this compliance task will prove daunting for the nation’s community banks and credit unions with few compliance officers. Many financial institutions also rely on software systems for managing their operations, and they have indicated to us that they will not be able to have the necessary software in place and operating by a deadline of January 2014.”
The legislators said that if financial institutions cannot comply with the CFPB’s new rules by the deadline, “it could lead to market distortions.”
“These distortions could adversely affect the availability of mortgage credit for consumer sin our states, particularly in rural or remote areas of the country,” the letter reads. “With these problems in mind, as expressed by our constituents, we respectfully request that you consider providing appropriate relief, including deferring implementation of these new mortgage rules until a date when all financial institutions can transition their systems to be fully compliant with the Bureau’s new mortgage rules.”
In addition to Wicker, other signatories include Sens. Mark Begich (D-Alaska); Kelly A. Ayotte (R-N.H.); Tim Scott (R-S.C.); Marco Rubio (R-Fla.); Roy Blunt (R-Mo.); John Thune (R-S.D.); John Barrasso (R-Wyo.); James M. Inhofe (R-Okla.); Thad Cochran (R-Miss.); Pat Toomey (R-Penn.); Jeff Sessions (R-Ala.); John Hoeven (R-N.D.); Jerry Moran (R-Kan.); Jeff Flake (R-Ariz.); Pat Roberts (R-Kan.); Saxby Chambliss (R-Ga.); John Boozman (R-Ark.); Lisa Murkowski (R-Alaska); Chuck Grassley (R-Iowa); Mike Lee (R-Utah); Michael B. Enzi (R-Wyo.); Deb Fischer (R-Neb.); Tom Coburn (R-Okla.); David B. Vitter (R-La.); and Mike Johanns (R-Neb.).