NCUA seeks ‘good faith’ QM/ability-to-repay compliance effort
Jan. 7, 2014 – As urged by NAFCU, NCUA on Monday said it will take into account a credit union’s good faith effort to comply with a slew of CFPB mortgage rules, including the new qualified mortgage/ability-to-repay rules, set to take effect Friday.
“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 rules.
NCUA issued a Regulatory Alert last week on the mortgage rules and said it would follow up with the supervisory letter in advance of the Jan. 10 effective date of the rules. On Friday, CFPB wrote to credit unions to address the general requirements of the rules.
CFPB is now planning an online, in-depth training session Jan. 10, streamed live from Phoenix, that will address the new rules from the perspectives of consumers and advocates.
The Jan. 10 training session, “Protecting homeowners: New tools for empowering consumers and advocates,” will include remarks by CFPB Director Richard Cordray. Training will be led by bureau attorney Cathy Mansfield. The session will be streamed live starting at 1 p.m. Eastern.
NAFCU has encouraged NCUA to keep in mind Cordray’s remarks about the bureau’s primary interest in “good faith efforts” toward compliance in the early months of the new 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.
NAFCU will monitor NCUA’s approach to examinations for compliance with the new mortgage rules.
NCUA Letter 14-CU-01
NCUA Supervisory Letter 14-01