Lenders ask CFPB for more time on QM rule
Aug. 27, 2013 – Lenders are asking for more time on the CFPB’s qualified mortgage rule, saying they aren’t ready for the Jan. 10, 2014 deadline.
American Banker states many banks are still waiting for vendors to update their systems as the CFPB continues to clarify its qualified mortgage and ability-to-repay rules.
The CFPB remains committed to the deadline. In an interview with American Banker, Richard Cordray, director of CFPB, said, “We have a very bird’s-eye perspective on how they’re coming along. They’ve made tremendous progress, and we’ve found ways to address concerns they’ve raised about what the rule actually means instead of just leaving it to them and saying, ‘It's your problem now,’ ” he said in regards to financial institutions making the deadline.
NAFCU has expressed concerns to the CFPB regarding the qualified mortgage and ability-to-repay rules as they greatly increase the regulatory burden on credit unions. According to a NAFCU Economic and CU Monitor survey in May of this year, of those credit unions that responded to qualified mortgage rule questions, 44 percent said they will cease originations of non-qualified mortgages, while another 44 percent will reduce originations. The ability-to-repay rule is also a concern for credit unions as the stringent requirements contained in the final rule will require them to make major investments and incur significant expenses.
In order to help credit unions navigate these rules, NAFCU has created the CFPB’s Mortgage Reform Webcast Series to provide a closer look at the bureau’s various mortgage regulations over the next several months. Webcasts in this series are slated through November and will cover rules on home equity lines of credit, periodic statements, error resolution and originations.
CFPB’s Mortgage Reform Webcast Series
NAFCU Economic and CU Monitor
American Banker article (8-23-13)