CUNA supports the Consumer Financial Protection Bureau’s proposed rule on higher-priced mortgage loan (HPML) exemptions, it wrote to the CFPB this week. The CFPB proposed several amendments to Regulation Z to exempt certain insured depository institutions and insured credit unions from the requirement to establish escrow accounts for HPMLs.
“We believe that this exemption represents a positive step forward to ensure that small, leanly staffed credit unions are not burdened with costly regulatory obligations that could prevent them from offering mortgage products that are right for a members’ financial situation,” the letter states. “We commend the Bureau for this codification of the statutory exemption.”
Specifically, the proposed new regulatory exemption applies to insured depository institutions or insured credit unions when the loan is secured on a borrower’s principal dwelling and the covered entity:
CUNA also recommended that the CFPB: