Feb. 7, 2013 – CFPB Director Richard Cordray told NAFCU and other financial industry representatives today that it would be a mistake for prudential regulators to examine institutions in a way that steers them toward providing only mortgages defined as “qualified” under the CFPB's ability-to-repay rule.
Cordray, briefing the industry group on the agency’s final mortgage rulemakings, said the CFPB wants other types of mortgages to flourish as well. Bureau staff added that they would expect the percentage of qualified mortgages in the market to decline following expiration of a temporary qualified mortgage, or QM, exemption for loans purchased by the government-sponsored enterprises.
That exemption is due to expire after seven years or when the GSEs are no longer in conservatorship, whichever is earlier.
Today’s briefing was attended by NAFCU Senior Regulatory Affairs Counsel Tessema Tefferi and Regulatory Affairs Counsel Angela Meyster. NAFCU is maintaining ongoing communications with CFPB Director Richard Cordray and staff on the rules as it seeks to prevent unnecessary growth in credit unions’ regulatory burden.