CUNA offers design help in mortgage registration plan

WASHINGTON (11/13/08)—The Credit Union National Association (CUNA) has requested to be included in the design process as federal regulators proceed to hammer out details of a national licensing and registry program for mortgage originators.

The program is required under the Housing and Economic Recovery Act, signed into law in July. It requires employees of state- and federally chartered credit unions, and others, who originate mortgages to annually register with the National Mortgage Licensing System and Registry as a "registered loan originator."

The law requires the National Credit Union Administration and the federal banking agencies via the Federal Financial Institutions Examination Council (FFIEC) to develop and maintain the registry system in conjunction with the Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators. The FFIEC agencies have one year to put this program into place.

In a letter to the NCUA, CUNA wrote Wednesday, "We have been actively involved in both providing information to our members about the new mortgage registration system and soliciting their views and concerns with regard to both the burdens and the areas in which further clarification is needed."

Therefore, the letter said, CUNA could assist federal regulators in understanding credit union concerns about the registry and licensing program prior to such a program being finalized.

The CUNA letter went on to fully describe six main areas of concern. Use the resource link below to read the complete letter.

Resource Links

CUNA Letter to NCUA