Feb. 8, 2013 – CFPB Director Richard Cordray told NAFCU and other financial industry representatives Thursday that it would be a mistake for prudential regulators to examine institutions in a way that steers them toward only providing mortgages defined as “qualified” under the ability-to-repay rule.
Cordray is also preparing to testify before the Senate Banking Committee next week on Dodd-Frank Act implementation.
During Thursday’s industry briefing, Cordray 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 once a temporary QM exemption for loans purchased by the government-sponsored enterprises expires. That exemption is due to expire after seven years or when the GSEs are no longer in conservatorship, whichever is earlier.
Thursday’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.
Thursday’s CFPB briefing also addressed rules on mortgage servicing, Home Ownership and Equity Protection Act requirements, escrow account, loan originator compensation and qualifications and appraisals.
CFPB staff said the bureau plans to issue a follow-up proposal on the higher-priced mortgage appraisal rules in coming months. It’s also working on guidance to help credit unions and others through mortgage rule implementation.