MBA Advocacy Update Jan. 31, 2022
Bill Killmer bkillmer@mba.org; Pete Mills pmills@mba.org.
Recently, MBA and a coalition of financial services trade associations filed a joint comment letter to the Consumer Financial Protection Bureau on its assessment of the HMDA Rule. Also last week, the CFPB issued a request for public comment seeking information on “fees that are not subject to competitive processes[.]”
MBA Comments on CFPB’s HMDA Rule Assessment
MBA and a coalition of financial services trade associations filed a joint comment letter in response to a Request for Information seeking stakeholder input on the Consumer Financial Protection Bureau’s planned voluntary assessment of the Home Mortgage Disclosure Act Rule. Consistent with the assessment’s focus on the rule’s benefits and burdens, the associations’ comment letter highlights the costs associated with the expanded HMDA data fields and the limited value of the information collected under these new data fields.
- Why it matters: The assessment report, which the Bureau anticipates issuing by January 1, 2023, may serve as the basis for future revisions to the HMDA Rule.
For more information, please contact Justin Wiseman at (202) 557-2854 or Blake Chavis at (202) 557-2930.
CFPB Seeks Public Feedback on Fees
On Wednesday, the CFPB issued a request for public comment seeking information on fees that are not subject to competitive processes. As the information request explains, the Bureau is concerned that “[e]xploitative junk fees charged by banks and non-bank financial institutions have become widespread, with the potential effect of shielding substantial portions of the true price of consumer financial products and services from competition.” The scope of the information request is broad, covering a wide range of financial services fees, including several fees potentially found in mortgage servicing or origination transactions, such as late payment fees, convenience fees for processing payments, fees for paper statements, and “ancillary fees in the mortgage[.]” An MBA-prepared summary of the request for comment is available here.
- Why it matters: The announcement accompanying the information request notes that the Bureau’s intent is to “strengthen competition in consumer finance by using its authorities to reduce these kinds of junk fees.” MBA believes the RFI fails to acknowledge several realities by including the mortgage industry in the scope of this review, most notably the extensive mortgage disclosure regime, including Know Before You Owe and the ATR/QM rules. These rules were put in place by the CFPB over the past decade with the express purpose of making mortgage transactions highly transparent and “shoppable” in a very competitive mortgage market – a market with more than 4,500 mortgage lenders of different sizes, business models, and distribution channels competing to give consumers the best price and service.
- What’s next: MBA looks forward to presenting to the Bureau the compelling data about mortgage market competitiveness and the mortgage-related disclosure regime, and will work with members to prepare a response to the information request. Comments are due on or before March 31, 2022.
For more information, please contact Justin Wiseman at (202) 557-2854 or Blake Chavis at (202) 557-2930.
Upcoming MBA Education Webinars on Critical Industry Issues
MBA Education continues to deliver timely programming that covers the spectrum of challenges, obstacles and solutions pertaining to our industry. Below, please see a list of upcoming webinars – which are complimentary to MBA members:
- IRS Tax Transcripts – 4506-C Changes and Other Updates – February 2
- Fair Lending and Redlining, Part I – Overview of Regulations and Enforcement – February 7
- Mortgage Servicing Spotlight: Best Practices for Managing Borrower Communications – February 8
- Fair Lending and Redlining, Part II – Managing and Maintaining Your Compliance Program – February 9
- Fair Lending and Redlining, Part III – Opportunities and Moving Forward – February 10
- Successful Recruiting in a Changing Marketplace – February 10
- The Last Mile for LIBOR – February 17
- CONVERGENCE: The 2022 Legislative Outlook for Affordable Housing – February 17
MBA members can register for any of the above events and view recent webinar recordings. For more information, please contact David Upbin at (202) 557-2931.
