The National Association of Federal Credit Unions (NAFCU) has aired its concerns regarding the proposed fees to be assessed by the Nationwide Mortgage Licensing System & Registry (NMLS) relative to registration of federally regulated mortgage loan originators pursuant to the Secure and Fair Enforcement Mortgage Licensing Act (SAFE Act).
In a letter to State Regulatory Registry LLC (SRR), the wholly owned subsidiary of the Conference of State Bank Supervisors that operates the NMLS, NAFCU argued that the proposed fees were excessive and unfair to the credit union industry.
‘Credit unions are not-for-profit cooperative institutions that are chartered to provide financial services to their members,’ wrote Tessema Tefferi, NAFCU's associate director of regulatory affairs. ‘By law, their capital consists of retained earnings, and they are not permitted to raise capital outside their credit union. As such, each cost they incur must be passed down to their members, generally through lower returns on deposits or higher rates on loans. Consequently, the proposed fees will be costly to the 92 million Americans that count on their credit unions.Â
‘With the financial predicament that Americans are facing today,’ Tefferi continued, ‘we do not believe these costs are appropriate or warranted.’
Tefferi requested that the SRR revise the proposed fees so that ‘credit unions are charged substantially lower fees than proposed.’