Jan. 9, 2013 – The CFPB is expected to release a final rule this week that will define “qualified mortgage” as it applies to a potential home buyer’s ability to repay a mortgage loan, and NAFCU is hoping the measure will include a safe harbor for lenders.
The proposed rule was issued by the Federal Reserve Board in 2011 and has been under review at the CFPB ever since the reg was transferred to the new agency. NAFCU has strongly urged that the final QM provisions include a safe harbor to limit civil actions against lenders that fully comply with the QM standard.
NAFCU’s board and CFPB Director Richard Cordray discussed the QM standard and more during a meeting last month at bureau headquarters.
The association has pressed for a safe harbor in joint trade letters to Cordray and Congress, its own communications with Congress, in official regulatory comment letters and in discussions between Cordray and NAFCU President and CEO Fred Becker.
NAFCU has warned that lack of a QM safe harbor could discourage many credit unions from continuing to provide mortgage loans.