CFPB highlights QM, ability-to-repay rules at NAR
Jan. 8, 2014 – CFPB Director Richard Cordray and others discussed key points of the qualified mortgage/ability-to-repay rules taking effect Friday during a conference yesterday before the National Association of Realtors.
At the meeting, attended by NAFCU Director of Regulatory Affairs Mike Coleman and Senior Regulatory Affairs Counsel Tessema Tefferi, Cordray gave an overview of the bureau’s new mortgage rules, focusing on the ATR/QM rule and the mortgage servicing and loan origination rules.
Cordray emphasized that the rule does not prohibit non-qualified mortgages and said only mortgages made after Friday, Jan. 10, will be affected. He countered what he sees as misconceptions about the difficulty of complying with the rules, saying the rule only requires lenders to ask for information most responsible lenders would ask for anyway and that there is no down payment requirement.
After a Q&A session with Cordray, a panel discussion was held on the impact of housing policy on homeownership, featuring panelists from the Century Mortgage Company, AB Schnare Associates LLC, the Consumer Federation of America, and the NAR.
After urging from NAFCU, NCUA announced on Monday it would take into account a credit union’s good faith effort to comply with the new QM/ability-to-repay rules.
“As with any new requirement in its early stages after becoming effective, NCUA field staff will take into account a credit union’s good-faith efforts to comply with the new rule,” the agency wrote in Letter to Credit Unions 14-CU-01, which provides credit unions with a copy of the agency’s supervisory letter to examiners on the new rule.
CFPB on Tuesday also released new resources for consumers related to the mortgage rules, including sample letters for consumers to send to mortgage servicers, tips for homebuyers, and frequently asked questions.
Cordray's remarks at NAR
NCUA Letter 14-CU-01
NCUA Supervisory Letter 14-01
NAFCU mortgage rules compliance page