NAFCU-supported change to QRM expected today
Aug. 28, 2013 – The Federal Deposit Insurance Corporation will meet this morning, and is expected to issue a second proposal for an interagency rule defining “qualified residential mortgages,” which NAFCU has requested that it make consistent with the CFPB’s definition for “qualified mortgages.”
The first interagency proposed rule concerning QRMs was issued in 2011, and it included a requirement for 20 percent down payments, which NAFCU opposed. NAFCU wrote the agency that it opposed risk retention requirements. However, NAFCU requested that, if the agencies were to go forward with the proposed rule, they make the definitions of QM and QRM consistent.
The first proposal was also mentioned as a major problem by several lawmakers during the House Financial Services Committee hearing on Chairman Jeb Hensarling’s, R-Texas, draft housing finance reform bill, at which NAFCU testified.
The proposed rule would not apply to credit unions directly; however – as participants in the mortgage market – credit unions will feel the effect of any final rule impacting that market. Although NAFCU welcomes improvements on the previous version, the association still opposes any new risk retention requirements as they would make participation in the securities market more difficult for credit unions.