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Senator Angus King is part of a bipartisan group of Senators who have introduced legislation that would provide significant relief to Maine credit unions when it comes to residential mortgages and elder financial abuse reporting. The Maine CU League and the Credit Union National Association worked closely with the Senator to get him to become an original co-sponsor of the bill.
“Credit unions (and community banks) support our state’s businesses, encourage job growth, and help Maine’s hardworking men and women achieve greater financial stability and better credit options,” Senator King. “But today, these institutions are faced with burdensome regulations that were intended to reign in Wall Street in the wake of the financial crisis. Maine people and small businesses should not be paying for these misdeeds. Better tailoring regulations for small financial institutions will help rebalance regulatory costs with their benefits without compromising the safety and soundness of the financial system. This commonsense agreement comes after months of measured, thoughtful negotiations and would provide much needed regulatory relief to stimulate our economy and help people across our state. This is an example of how Congress can and should work.”
“Access to affordable credit, including mortgages, is a credit union hallmark and fundamental to economic growth,” said Todd Mason, President and CEO of the Maine Credit Union League. ” That’s why the credit unions of Maine thank Senator King for trying to rein in arbitrary restrictions, unnecessary regulations, and cyber threats, all of which increase costs, and reduce access to needed loans. By providing relief in these areas, Senator King will help Maine credit unions continue serve their 700,000 members and small business owners with affordable financial services.”
Specific provisions of the bill that would help Maine CUs to better serve members include:
- Treat loans held in portfolio by certain lenders as Qualified Mortgages;
- Raise Home Mortgage Disclosure Act reporting thresholds to 500 closed-end and open-end loans in calendar year;
- Apply the same consumer protections in place for mortgage lending to Property Assessed Clean Energy (PACE) loans;
- Remove the three-day wait period required under the Truth in Lending Act Real Estate Settlement Procedures Act integrated disclosure rule’s mortgage disclosure is a creditor extends a second offer of credit unions a lower annual percentage rate to the consumer;
- Provide legal immunity for properly trained, good-faith reporters of suspected financial elder abuse;
- Require the Treasury to conduct a study on the risks that cyberthreats might pose to financial institutions.
According to the League, mark-up of the bill is expected to begin in early December.