CUNA supports proposed changes to proposed changes to ethnicity and race collection under the Equal Credit Opportunity Act (ECOA). The Consumer Financial Protection Bureau (CFPB) proposed the amendments to provide a creditor with additional flexibility in how it collects applicant ethnicity and race information.
“CUNA supports these changes and believes they can result in a modest reduction of the regulatory burden imposed on credit unions, a burden that has dramatically increased with the adoption of the 2015 Home Mortgage Disclosure Act (HMDA) final rule,” the letter reads.
CUNA also urged CFPB to go farther in synchronizing Regulation B (which implements ECOA) and Regulation C (which implements HMDA) by only requiring collection under Regulation C if it is necessary for Regulation B purposes.
“The volume thresholds under Regulation C are already set too low and are creating a burden for small financial institutions, in many cases forcing them out of the business,” the letter reads. “While we recognize this issue appears beyond the scope of this proposal, we nevertheless urge the CFPB use its authority to provide as much regulatory relief as possible for credit unions.”
In addition to other conforming and technical changes, the proposal replaces and updates the 2004 version of the Uniform Residential Loan Application to the current version issued by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation.