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 Andy Keeney |
March 7, 2013 – Credit unions received an overview of the CFPB’s ability-to-repay requirements and qualified mortgage standards rule during a NAFCU webcast Wednesday featuring credit union attorney Andy Keeney, partner at Kaufman & Canoles.
Keeney, as well as NAFCU Director of Regulatory Compliance Steve Van Beek, made it into NAFCU’s offices despite area weather closings and conducted the webcast from the NAFCU studio. The webcast, part of NAFCU’s series on the CFPB mortgage rules, provided a look at what types of mortgages are affected, the eight key factors credit unions must consider when determining a member’s ability to repay, which loans meet the “qualified mortgage” standard and more.
Explaining some of the rule’s key points, Keeney noted that:
- The ability-to-repay/QM rule applies to all credit unions offering mortgage loans.
- It covers closed-end loans – generally all loans except home equity lines of credit, timeshare plans, reverse mortgages and temporary loans (those with terms of up to 12 months).
- It provides a safe harbor, or conclusive presumption of compliance, for loans that are written strictly according to the CFPB’s “qualified mortgage” standard.
- It provides a rebuttable presumption of compliance for “qualified mortgages” that are higher-priced.
- A loan that conforms with Fannie Mae and Freddie Mac underwriting guidelines plus specific other criteria will be treated as a qualified mortgage under a temporary provision in the rule. That provision will expire no later than Jan. 10, 2021.
Wednesday’s webcast was the second of eight planned this year as part of NAFCU's webcast series on the CFPB’s mortgage reform rules; it remains available on demand for one year to those who registered and for purchase.
The next webcast, “Digging Deeper: CFPB's Mortgage Rules,” presented by NAFCU’s compliance team, is set for March 27.