The Consumer Financial Protection Bureau should heed the warnings of community banks over proposed changes to RESPA-TILA disclosures, the Small Business Administration Office of Advocacy told the bureau. In a letter to the CFPB, the Office of Advocacy noted that ICBA has expressed concerns with proposed finance-charge reforms that would drive up annual percentage rates, requiring escrows for taxes and insurance that would limit credit availability. The office also cited ICBA concerns that the proposed changes would require upgrades to community bank loan-processing systems, staff retraining and other burdens.

In its letter, the Office of Advocacy encouraged the CFPB to consider alternatives to the proposed changes that would not drive community banks from the marketplace and increase prices for consumers. The office said that the CFPB should postpone any decisions on its proposed changes until it has more economic data on their impact.

ICBA has repeatedly encouraged the CFPB to differentiate between problem lenders and community banks in its RESPA-TILA streamlining project. In letters to the bureau, congressional statements and Small Business Regulatory Enforcement and Fairness Act (SBREFA) panel participation, the association has advocated tiered regulation that recognizes the responsible banking and lending practices of community banks.

The Federal Housing Finance Agency directed Fannie Mae and Freddie Mac to raise guarantee fees on single-family mortgages by an average of 10 basis points. The FHFA said the changes to g-fee pricing are designed to encourage greater participation in the mortgage market by private firms.

For loans exchanged for mortgage-backed securities, the increase will be effective with settlements starting Dec. 1. For loans sold for cash, the increases will be effective with commitments starting Nov. 1. Fannie and Freddie will work directly with lenders to implement the changes.

The FHFA also released a report that found that the average g-fee charged by Fannie and Freddie increased from 26 basis points in 2010 to 28 basis points in 2011. The agency said the guarantee fee changes are designed to address findings that mortgages that posed higher credit risk were subsidized by lower-risk loans and that a majority of the single-family mortgages acquired by the government-sponsored enterprises came from a small group of large lenders.

Credit union membership increased by more than 640,000 individuals to reach a new record high for the industry, according to second-quarter call report data. The National Credit Union Administration reported that the industry’s 93.1 million members deposited an additional $2.7 billion in savings at credit unions, though the number of federally insured credit unions declined from 7,019 to 6,960 during the second quarter.

Credit union loan volumes increased by 1.7 percent, the fifth consecutive monthly increase. Member business lending advanced by 1.2 percent to $40.2 billion. Credit unions’ total assets grew by $5.9 billion in the second quarter after surpassing $1 trillion for the first time in the previous quarter.

The combined headwinds of a slow housing recovery, government budget restraints and deficits, and stresses in credit and financial markets are restraining the economic recovery, Federal Reserve Chairman Ben Bernanke said. Speaking from the Federal Reserve Bank of Kansas City’s Economic Symposium in Jackson Hole, Wyo., Bernanke said “daunting” economic challenges remain, noting that the central bank is able to provide further monetary easing as needed.

“Taking due account of the uncertainties and limits of its policy tools, the Federal Reserve will provide additional policy accommodation as needed to promote a stronger economic recovery and sustained improvement in labor market conditions in a context of price stability,” Bernanke said.

The University of Missouri’s Food and Agriculture Policy Research Institute released an extensive analysis comparing key provisions of the Senate-passed farm bill (S. 3240) with the bill passed by the House Agriculture Committee (H.R. 6083). 

The analysis finds that the House bill provides substantially more support than the Senate bill to producers of wheat, rice, barley and peanuts. It notes that while production of those crops would be greater under the House bill, corn and soybean production would be greater under the Senate bill. Texas A&M University released a companion report using FAPRI’s projected prices.

Many businesses will admit their most important assets are their employees. Join the Small Business Administration and Agility Recovery for a webinar on strategies and best practices for helping your employees prepare themselves and their families for a crisis. “Protecting Your Organization by Preparing Your Employees” is scheduled for 2 p.m. (Eastern time), Wednesday, Sept. 12. Register Online.

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