You are certainly in for a treat tonight. We’re here with thousands upon thousands of hard-working, middle class Americans to see who wins this battle royale. The winner will take the title and surely impact Credit Union’s ability to be memberlicious and how affordable and available mortgage credit will be to Americans in the future….
So let’s get ready to rumble!
In this corner, weighing in at nearly 3 years old with around 1,000 employees is the Consumer Financial Protection Bureau. They’ll be throwing six new rules at Credit Unions that go into effect on January 10th. The most onerous is the dreaded Ability to Re-Pay/Qualified Mortgage Rule. It strikes more fear than a pile driver in any mere mortal Credit Union.
And in this corner, weighing in at just over 5 years old with its tag team partners of outgoing Director Edward DeMarco and his replacement, the Honorable Mel Watt is the Federal Housing Finance Agency. They bring their patented conservator move that is designed to knock an opponent out cold. And their newest move, just shown to the public for the first time this week, is the Loan Level Price Adjustment. That’s more painful to a borrower than a body slam.
And in the third corner, hailing from Alexandria Virginia with an annual budget in excess of a quarter billion dollars with more than 1,000 employees is the NCUA. They’re the old man in the ring tonight, with over 40 years of regulatory experience. But they certainly can’t be discounted with their famous DOR move and their stranglehold on IRR.
And finally, dressed in their white hat, we have memberlicious Credit Unions. They don’t seem to have much going for them lately except their cooperative structure and desire to do what’s right for consumers. They didn’t start this fight, but they are certainly caught up in it.
So tonight, we get to see who will win in this high stakes game of real estate finance. There’s the bell. And the CFPB, NCUA and FHFA all charge the Credit Unions. This doesn’t seem like a fair fight.
And oh my, what’s this? Coming out from the tunnel and charging toward the ring is the Federal Reserve Board. They’re wielding a metal chair with the words ”End Monetary Easing” on it. I would hate to be caught upside the head with that thing.
Each of these heavyweights is working, albeit at cross purposes, to impact mortgage lending. And the probable loser: middle class American consumers.