WASHINGTON (7/20/15)--CUNA, with other financial services organizations, has written to U.S. Senate members to express strong opposition to any provisions in the Highway Transportation Funding Act of 2015 that would create new reporting mandates for mortgage lenders.
The House passed its version of the bill (H.R. 3038) Tuesday evening.
The House bill contains new reporting requirements for all mortgage lenders to the Internal Revenue Service (IRS), including the origination date of each mortgage, amount of outstanding principal balance on the loan, and the property address.
“Mortgage lenders already report to the IRS on interest paid annually by the borrower, which helps ensure tax compliance. Mortgage lenders also report the data specified in Section 2003 to the Consumer Financial Protection Bureau in compliance with the Home Mortgage Disclosure Act,” the letter reads. “We strongly oppose duplication of this reporting for the IRS.”
CUNA has been a constant advocate for regulatory relief, particularly since the enactment of the Dodd-Frank Act, which has placed a number of burdens on credit unions, despite the fact that they did not contribute to the financial crisis.
“To create yet another new reporting requirement--increasing rather than reducing regulatory burden and expense, especially for the smallest lenders--would be a step backwards and a jarring contrast of expectations for mortgage lenders and their customers,” the letter reads.
Along with CUNA, the letter was signed by the Independent Community Bankers of America and the National Association of Federal Credit Unions.