CUNA Comment Letter

RE: Concerns with Regard to the Mortgage Registration Provisions of the Housing and Economic Recovery Act of 2008

November 12, 2008

Ms. Joy Lee
Director - Division of Supervision
Office of Examination and Insurance
National Credit Union Administration
1775 Duke Street
Alexandria, Virginia 22314-3428

Dear Ms. Lee:

The Credit Union National Association (CUNA) would like to take this opportunity to raise a number of issues and concerns with regard to the mortgage registration provisions of the Housing and Economic Recovery Act of 2008 (Act). CUNA represents approximately 90 percent of our nation’s 8,200 state and federal credit unions, which serve nearly 92 million members.

The Act requires the creation of a national registry for all mortgage originators and the licensing of non-depository institution mortgage originators. Under this system, any individual who originates residential mortgage loans as an employee of any state or federal credit union will have to register on an annual basis. The Act also requires NCUA and the federal banking agencies to develop and maintain the system for registering bank and credit union employees, in conjunction with the nationwide database for mortgage professionals that was developed recently by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators. This registry program must be in place by August 2009, and it is our understanding that the agencies will soon begin the process of working together to develop this new mortgage registration system.

As part of this process, we would request that NCUA include CUNA as part of these efforts to develop the national registry. 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. We believe NCUA and the federal banking agencies would benefit from understanding these concerns at this time to ensure they are addressed before the registry is finalized next year. It is our understanding that Ross Kendall from the Office of General Counsel is also involved in the process of developing the new mortgage registration system, and we would welcome the opportunity to meet with either you or Ross at your earliest convenience to discuss these issues.

In preparation for such a meeting, we want to highlight some of the issues and concerns that have been brought to our attention, which include the following:

We appreciate your attention to these matters and would welcome the opportunity to meet with you at your earliest convenience to further discuss our concerns. You or your staff may contact Senior Vice President and Deputy General Counsel Mary Dunn or me at (202) 638-5777 with any questions and to schedule a meeting to discuss these issues.


Jeffrey Bloch
Senior Assistant General Counsel