Cordray writes CUs on mortgage rules, Jan. 10 deadline

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Jan. 6, 2014 – CFPB Director Richard Cordray sent a letter to credit unions Friday that highlights the basics of the new mortgage rules, including the ability-to-repay/qualified mortgage rule, which credit unions must comply with starting Jan. 10.

“We recognize that the challenges posed by these changes are not small, but the implementation of these rules is another critical step in the ongoing recovery of the housing market,” Cordray wrote. “And so we have spent considerable time over the past year developing tools and providing guidance to help you navigate the rules and make the changes necessary to ensure that your mortgage businesses are in compliance with the new rules. In particular, we want to make sure you understand how the ATR/QM rule affects small creditors.”

Cordray listed resources available to credit unions on the agency’s website. NCUA issued a regulatory alert Thursday on the same subject, providing general guidance for credit unions to comply with the ATR/QM rule and promising a supervisory letter to examiners before that date.

NAFCU has encouraged NCUA to remember Cordray’s remarks about the bureau’s primary interest in “good faith efforts” toward compliance in the early months of the new mortgage rules. In November, NAFCU President and CEO Dan Berger wrote NCUA Board members about the importance of flexibility and working with the CFPB on examinations and enforcement.

More information on the mortgage rules and compliance is available on the NAFCU website, including in the latest issue of NAFCU’s Compliance Monitor, which examines the four types of QMs.

Related Links:
"NCUA gives QM guidance in alert," 1/2/14
NAFCU Mortgage Rules page