The New York Credit Union Association submitted a memo in support of the Community Institution Mortgage Relief Act, which is sponsored by Rep. Claudia Tenney, R-22.
The legislation, H.R. 3971, would amend the Truth-in-Lending Act by creating a safe harbor from mortgage escrow requirements for financial institutions with consolidated assets of $25 billion or less with respect to mortgage loans held in portfolio for at least three years.
Association President/CEO William J. Mellin submitted the memo to Tenney and Rep. Brad Sherman, D-California, explaining that the bill would provide much-needed regulatory relief for credit unions and other small, community-based financial institutions.
Mellin explained that the legislation would be especially impactful for state-chartered credit unions in New York, which are required to pay 2 percent interest on mortgage escrow accounts under state law.
“In light of the CFPB’s unwillingness to leverage its statutorily-granted exemption authority to ease the regulatory burden on small, community-based financial institutions, we commend you for your leadership on this important issue,” wrote Mellin. “The New York Credit Union Association strongly supports H.R. 3971 and urges Congress to pass it without delay.”
The memo was entered into the record and will be included in the official House Financial Services Committee report.