WASHINGTON (7/15/15)--The U.S. House passed the Mortgage Servicing Asset Capital Requirements Act (H.R. 1408) Tuesday. The CUNA-supported bill passed with an amendment that removed a delay in the National Credit Union Administration’s risk-based capital proposal while its effects were studied.
The bill requires federal banking agencies to conduct a study of appropriate capital requirements for mortgage servicing assets for nonsystemic banking institutions. The amendment that was added on ensures the proposals in question will not be delayed while the study is conducted.
The NCUA’s risk-based capital proposal places higher risk weightings on mortgage servicing assets, which CUNA believes could make mortgages potentially more costly to consumers or disadvantageous for credit unions to offer those services.