ACUMA ONpoint

Financial regulation is undergoing a seismic shift, creating unprecedented challenges for credit unions and mortgage lenders. Our expert guest, Leah Dempsey, a Shareholder with Brownstein Hyatt Farber Schreck, walks us through the complex policy landscape reshaping credit unions' operations.

The CFPB stands at a pivotal moment following a DC Court of Appeals decision that could enable significant staff reductions. While the Bureau has already fulfilled many statutorily mandated duties, this ruling raises questions about its capacity to undertake planned initiatives like payday loan rule revisions and review market participant thresholds. The legal battle continues with potential appeals, creating regulatory uncertainty for financial institutions navigating compliance requirements.

Meanwhile, "debanking" receives renewed attention through a recent executive order addressing discrimination against legally operating businesses in banking relationships. Dating back to Obama-era policies that identified disfavored industries, inconsistent application of these guidelines resulted in legitimate businesses losing access to financial services. Credit unions should review their membership policies to ensure they don't categorically exclude industries or individuals without proper cause.

Perhaps most dramatic is the unprecedented leadership vacuum at the NCUA, where legal maneuvers have left Chairman Kyle Hauptman as the sole board member – a situation never before seen in the agency's history. This extraordinary circumstance raises profound questions about decision-making authority and regulatory guidance, particularly for emerging areas like cryptocurrency. Credit unions face significant operational challenges amid this leadership uncertainty.

The potential IPO for Fannie Mae and Freddie Mac adds another layer of complexity, with discussions accelerating about releasing the GSEs from conservatorship. Questions persist about government guarantees, implementation timelines, and the impact of complex financial arrangements from the conservatorship period. These decisions will fundamentally reshape mortgage markets and lending operations.

Subscribe now to stay informed as these critical policy developments unfold, and join us next time for more expert analysis on the issues that matter most to credit unions and their members.

Ever wonder what happens when a team of mortgage industry professionals willingly subjects themselves to progressively spicier hot sauces while reflecting on their year? The ACUMA team delivers exactly that in their annual mid-year review episode, blending genuine reflection with watery eyes and burning sensations.

The episode kicks off with diving into the team's favorite moments from the first half of the year. 

• Kate, the newest team member, shares how meaningful it was experiencing her first workshop in Savannah and meeting everyone face-to-face. 
• Camryn celebrates her return from maternity leave,
• Others reminisce about baseball games, successful workshops, and surprisingly competitive rock-paper-scissors tournaments that had mortgage professionals channeling their inner playground selves.

Between increasingly fiery hot sauce tastings, the team candidly discusses lessons learned and areas for improvement. 

• Krista opens up about her apprehension regarding their first convention center venue for the annual conference, citing the many uncontrollable variables compared to their usual hotel settings. 
• Justin reflects on transportation challenges from previous events.
• Peter acknowledges that having back-to-back workshops in the Southeast might not have been the optimal geographical strategy.

The conversation takes a delightfully spooky turn when the team shares stories about their stay at a haunted hotel in Savannah, formerly a mortuary, complete with ghost tours, mysterious occurrences, and Kate successfully terrifying Krista on an evening walk. This storytelling reveals the close-knit nature of the team and how they balance professional excellence with genuine camaraderie.

Looking ahead, excitement builds around several initiatives for their annual conference, including 

• "ACUMAx" (a new speaking platform featuring six selected presenters)
• An innovative exhibit hall layout, charity activities, and yes, therapy animals including dogs, possibly bunnies, and maybe even a mini horse (not a pony, as Justin learns through some gentle ribbing).

The episode wraps with increasingly uncomfortable hot sauce reactions and groan-worthy dad jokes, showcasing the team's ability to maintain humor even when their mouths are literally on fire. Whether you're a credit union professional looking for industry insights or simply enjoy witnessing good-natured suffering in the name of content, this episode delivers both substance and entertainment in equal measure.

Imagine a world where nobody's watching. Would you still do the right thing? This thought-provoking question lies at the heart of our enlightening conversation with Jon Seward, former Department of Justice fair lending enforcement leader and current Of Counsel with Mitchell Sanders.

Drawing from over two decades of experience as the architect of the DOJ's combating redlining initiative, Jon delivers a powerful warning to credit unions that might be tempted to relax their fair lending compliance efforts during the current administration: the regulatory pendulum always swings back.

"When the feds are back in the picture, they're going to be looking at what we do now," Jon emphasizes, explaining that future enforcement actions will examine years of data spanning multiple administrations. Credit unions that maintain strong fair lending practices even without federal scrutiny will be better positioned than those that took their "foot off the compliance pedal."

Looking toward future enforcement priorities, Jon predicts increased focus on underwriting disparities, particularly regarding assistance provided to marginally qualified borrowers across different demographic groups. He also provides practical guidance on automated underwriting systems and manual override practices.

For credit union mortgage lenders navigating this complex regulatory environment, the message resonates clearly: maintaining robust fair lending compliance isn't just about avoiding problems, it's about serving communities effectively, building a stronger business, and remembering that behind every statistic is a real person whose life is impacted by these decisions.

How is your credit union maintaining fair lending practices when nobody's watching? Join the conversation and discover why doing the right thing is always good business. Tune into the latest ONpoint Podcast for the full scoop.

Sponsored by Consolidated Analytics

The "One Big Beautiful Bill Act" (OBBA) passed through Congress along party lines, preserving the credit union tax status while making significant changes to mortgage policy and CFPB funding. Zach Pfister joins the ONpoint Podcast policy series and breaks down the political dynamics behind major policy developments affecting credit union mortgage lenders and previews upcoming legislative challenges.

In this discussion with ACUMA President Peter Benjamin, Zach and he discuss:

• Credit union tax status was preserved despite being initially considered as a potential revenue source.
• Successful advocacy efforts included bipartisan congressional opposition and thousands of credit union members visiting Capitol Hill.
• CFPB funding cut by nearly 50%, from 12% to 6.5% of the Federal Reserve's operating budget.
• FHFA Director Pulte is making significant policy announcements via social media.
• Changes to GSE conservatorship are potentially coming in the fall with a "novel approach."

Tune in now to get this and much more!

Sponsored by Loan Vision.

Mortgage servicing compliance represents one of the most overlooked yet critically important aspects of credit union operations today. In this revealing conversation with Scott Weintraub, VP of Compliance at MQMR, we explore why credit unions often shortchange their servicing compliance resources despite the 30-year relationship at stake.

Scott shares his journey from law to mortgage compliance, explaining how his passion for helping companies comply drives him to educate credit unions about servicing risks. As he points out, "The servicing relationship could last decades, yet if there are resources allocated to compliance, it tends to be much more on the origination side."

This imbalance creates significant vulnerabilities in five key areas. 

1. Escrow administration requires annual analysis and proper handling of shortages or surpluses.
2. Customer service standards must meet regulatory expectations even for borrowers not in default.
3. Loss mitigation processes demand consistent treatment of applications and decisions.
4. Fee assessment and waiver policies must be applied fairly across all member segments.
5. Fair servicing practices - a concept many credit unions don't realize exists - require vigilant monitoring.

These areas are particularly dangerous because examiners consistently flag them during audits, looking not just for documented policies but evidence that these policies match actual practices. As Scott emphasizes, "The lack of a sufficient QC program is a finding that's very common."

The solution builds on two fundamental principles: 

1. Comprehensively understand your servicing obligations
2. Regularly examine your operations. 

This approach transforms "unknowable risk"—the worst possible position—into manageable, addressable issues.

Ready to strengthen your credit union's servicing compliance? Tune in now to get the latest.

Sponsored by Consolidated Analytics

Regulatory changes have been coming fast and furious in the credit union mortgage industry, leaving many wondering what's still required and what's been relaxed. In this eye-opening episode, Amanda Phillips, General Counsel and EVP of Compliance with ACES Quality Management, guides us through the regulatory maze with remarkable clarity.

Amanda brings her extensive compliance knowledge to bear on one of today's hottest topics: the withdrawal of policy statements regarding abusive acts and practices (UDAP). We explore what this means practically for credit unions, particularly regarding post-closing and servicing operations. With her unique ability to make complex compliance issues accessible, Amanda helps us understand that while certain guidance has been withdrawn, core obligations remain.

The conversation takes a deep dive into PMI termination requirements, distinguishing between automatic termination (based on original loan values) and borrower-requested termination (potentially based on current valuations). We examine the potential pitfalls of online property value estimates and how they relate to PMI obligations. This section alone could save your credit union from serious compliance headaches!

We also explore how the withdrawal of guidance on "unauthorized and unreasonable fees" impacts what credit unions can charge. Amanda emphasizes that transparency remains the key, even as regulatory frameworks shift. Her insights on loss mitigation rule changes provide critical context for servicing teams navigating post-pandemic realities.

Sponsored by Consolidated Analytics

In this conversation with Leah Dempsey, Shareholder at Brownstein Hyatt Farber Schreck, Washington's regulatory landscape is undergoing seismic shifts that credit unions can't ignore. The CFPB under Acting Director Mark Calabria has transitioned from addressing Biden-era regulatory holdovers to implementing proactive policy changes that could benefit the credit union industry. This includes potential revisions to decade-old mortgage rules and modifications to the controversial public complaint database that has long frustrated financial institutions.

Meanwhile, the reconciliation process faces significant hurdles as the Senate parliamentarian recently struck down several key provisions championed by Banking Committee Chairman Tim Scott, including an attempt to zero out CFPB funding. With a July 4th deadline looming, lawmakers face intense pressure to complete the package despite these setbacks and emerging geopolitical concerns in the Middle East potentially shifting priorities.

Most significantly for mortgage lenders, the Supreme Court's recent Hobbs Act ruling threatens to upend established compliance frameworks for member communications and lending programs. Like last year's landmark Loepper decision that ended Chevron deference, courts may give less weight to interpretations from agencies like the FCC, HUD, and USDA. For credit unions navigating the complex TCPA requirements or offering government-backed mortgage programs, this could create a challenging patchwork of judicial interpretations that vary by jurisdiction.

While Congress's immediate focus remains on reconciliation and stablecoin legislation, the second half of 2023 promises deeper engagement on housing and consumer finance issues more directly relevant to credit unions. These developments underscore the critical importance of staying informed and engaged with regulatory changes that will shape mortgage lending operations for years to come.

Sponsored by Loan Vision

What if the annual HMDA filing you've treated as a compliance burden is your most powerful strategic tool? In this eye-opening conversation with Laird Nossuli, CEO of iEmergent, we explore how credit unions can transform their relationship with mortgage data from reluctant obligation to competitive advantage.

Laird shares her passionate perspective on how HMDA data provides a comprehensive blueprint of lending patterns that can inform decision-making across your organization. From identifying gaps in your geographic coverage to spotting opportunities for product innovation, this consistently collected data offers insights beyond regulatory compliance.

The conversation is particularly compelling when we discuss how HMDA analysis can help credit unions build trust in historically underserved communities. By understanding the patterns of loan denials and addressing specific barriers to homeownership, credit unions can establish themselves as trusted partners in communities where banks have fallen short. As Laird explains, this trust extends beyond individual borrowers to entire families and neighborhoods, creating networks of loyalty that drive sustainable growth.

Perhaps most importantly, we challenge the conventional wisdom about mortgage lending being primarily driven by interest rates. "Interest rates don't buy mortgages. People buy mortgages," Laird notes, emphasizing that life events will always create demand regardless of rate environments. Credit unions can develop mortgage programs that thrive in any market by focusing on relationship-building rather than rate-chasing.

Sponsored by Consolidated Analytics.

The compliance landscape for credit union mortgage operations has never been more complex or critical to navigate successfully. In this eye-opening first episode of our Compliance Summer Mini Series, regulatory expert Michael Christians is joined by ACUMA President Peter Benjamin, warning against developing a false sense of security in today's shifting environment.

While federal regulators may be stepping back from aggressive enforcement, Michael reveals why this doesn't mean credit unions can relax their compliance vigilance. Instead, he explains how State Regulators and Attorney Generals are poised to fill the enforcement void, maintaining pressure on credit unions to uphold strict standards in fair lending, UDAP compliance, and mortgage servicing.

Through practical examples and clear explanations, Michael guides listeners through the most pressing compliance challenges facing credit unions today. He explains how fair lending enforcement is evolving under the current administration, why UDAP can touch virtually every corner of mortgage operations, and how seemingly simple oversights like failing to terminate PMI on time can create significant consumer harm and regulatory risk.

Tune in now as Michael uses his expertise to translate complex regulatory concepts into actionable insights, making this episode particularly valuable. 

Sponsored by Consolidated Analytics

The regulatory landscape for credit union mortgage lending is undergoing seismic shifts, particularly at the Consumer Financial Protection Bureau. In this revealing policy episode, we explore Jonathan McKernan's unexpected withdrawal from the CFPB director nomination and redirection to Treasury, leaving Russ Vought to continue serving as acting director for potentially another 210 days under the Federal Vacancies Reform Act.

Our conversation with Policy Advisor AnnMarie Conboy-DePasquale of Brownstein Hyatt Farber-Schreck dives deep into the Bureau's recent dramatic pullback of 67 guidance documents, many from the Chopra era but some dating back to the Bureau's inception. This regulatory retreat includes withdrawing compliance bulletins on housing choice vouchers, COVID-era mortgage servicing guidance, and perhaps most significantly, policy statements that had expanded UDAAP interpretations and states' authority to enforce consumer protection laws.

The episode reveals how these changes align with the administration's commitment to eliminate ten regulations for every new one implemented. We also examine potentially massive funding cuts looming on the horizon, with House budget reconciliation proposals potentially slashing the CFPB's funding by approximately 60%, reducing its ability to draw funds from the Federal Reserve.

Tune in now!

Sponsored by Loan Vision