Concerns with unsustainable burdens in negotiating mortgage closing cost fees on community-based mortgage lenders – including credit unions – is at the center of America’s Credit Unions’ letter to the CFPB sent Friday in response to the bureau’s request for information (RFI) regarding fees imposed in residential mortgage transactions.
“Credit unions have no influence on these third-party fees and do not have the resources or leverage to negotiate them,” wrote America’s Credit Unions Regulatory Advocacy Senior Counsel Amanda Smith. “We are concerned that shifting the burden of negotiating these fees to mortgage lenders will eliminate the clear disclosures that currently exist, and the fees will be packaged as part of a larger processing fee.”
Smith clarified credit unions’ role as mortgage lenders and recommended that the CFPB work with the Federal Housing Finance Agency to find ways to lower fees. She also offered support for congressional action, such as the Homes for Every Local Protector, Educator, and Responder Act, which establishes a program to provide mortgage assistance to law enforcement officers, elementary and secondary school teachers, firefighters, or other first responders.
“Credit unions support and advocate for innovative programs, including pilot programs, for first time homebuyers. Credit unions are community-oriented and have an interest in any voluntary pilot programs focused on vulnerable and underserved communities,” wrote Smith. “We support expansion of these programs and their funding.”
Read the full letter. The organization will continue to engage the bureau to ensure credit union concerns are voiced.
