Newsroom
March 24, 2015
McConnell, others ask Cordray to reevaluate 'rural' for QM
Senate Majority Leader Mitch McConnell, R-Ky., and two other senators have asked CFPB Director Richard Cordray to create an appeals process related to an exemption allowing balloon payments on qualified mortgages in "rural" or "underserved" areas.
The senators said the rule's current definition of "rural," included in the QM/ability-to-repay rule, still poses a problem in areas that could benefit from the exemption.
"The current definition, as established by the CFPB, excludes a significant number of demonstrably rural areas and – just as importantly – neglects to provide rural communities with any input in the process," McConnell with Sens. Joe Manchin, D-W.Va., and Dean Heller, R-Nev., wrote to Cordray last week.
The senators said despite CFPB's proposed changes to the definition, they remain concerned that some rural communities are being left out. They asked Cordray to implement an appeals process so communities excluded from the definition of rural can have their status reconsidered.
The senators also asked that CFPB retain the three-year time period used to determine whether a creditor is operating mostly in a rural or underserved area; CFPB's proposal would shorten the time frame to just one year.
In addition, the senators asked the bureau to "relax the requirement" that 50 percent or more of a creditor's mortgage originations are in rural or underserved areas if the creditor is to qualify for the rural exemption. "Many rural and underserved areas receive essential services from small community lenders that border rural areas or do business in areas not designated as rural, and these parts of the population should be afforded relief to ensure the continuity of access to mortgage credit," they wrote.
CFPB's proposal expanding the definition of rural areas is out for comment until March 30.
The senators said the rule's current definition of "rural," included in the QM/ability-to-repay rule, still poses a problem in areas that could benefit from the exemption.
"The current definition, as established by the CFPB, excludes a significant number of demonstrably rural areas and – just as importantly – neglects to provide rural communities with any input in the process," McConnell with Sens. Joe Manchin, D-W.Va., and Dean Heller, R-Nev., wrote to Cordray last week.
The senators said despite CFPB's proposed changes to the definition, they remain concerned that some rural communities are being left out. They asked Cordray to implement an appeals process so communities excluded from the definition of rural can have their status reconsidered.
The senators also asked that CFPB retain the three-year time period used to determine whether a creditor is operating mostly in a rural or underserved area; CFPB's proposal would shorten the time frame to just one year.
In addition, the senators asked the bureau to "relax the requirement" that 50 percent or more of a creditor's mortgage originations are in rural or underserved areas if the creditor is to qualify for the rural exemption. "Many rural and underserved areas receive essential services from small community lenders that border rural areas or do business in areas not designated as rural, and these parts of the population should be afforded relief to ensure the continuity of access to mortgage credit," they wrote.
CFPB's proposal expanding the definition of rural areas is out for comment until March 30.
Share This
Related Resources
Add to Calendar 2024-04-24 14:00:00 2024-04-24 14:00:00 Optimize Liquidity, Maximize Loan Growth: The Network Lending Advantage About The Webinar Join us to learn more about network lending, a cooperative model allowing credit unions to optimize liquidity and achieve loan growth. Discover how credit unions can participate in loan pools with other institutions, allowing them to diversify portfolios, access loans with potentially lower risk and higher yields, and expand lending capacity without necessarily needing a surge in deposits. Delve into how credit unions can pool their resources, set common underwriting and pricing standards, and collectively originate, buy, and sell loans to optimize liquidity management. Hear from your peers about best practices, case studies, and practical strategies to harness the full potential of network lending and how it's helped their credit unions. Don't miss this valuable opportunity to learn how to strengthen your credit union's position in today’s competitive environment. Key Takeaways: How network lending differs from traditional lending The benefits of participating in loan pools with other credit unions How credit unions can set common underwriting and pricing standards and collectively originate, buy and sell loans to optimize liquidity management Why network lending is critical to loan growth Watch On-Demand Web NAFCU digital@nafcu.org America/New_York public
Optimize Liquidity, Maximize Loan Growth: The Network Lending Advantage
preferred partner
LendKey
Webinar
Add to Calendar 2024-04-23 14:00:00 2024-04-23 14:00:00 Monitoring the Latest Litigation Risks Credit unions’ operations pose litigation risks, with more of these cases being filed as class action lawsuits. In this Monitoring the Latest Litigation Risks for Credit Unions webinar, you’ll review some of the specific kinds of lawsuits impacting credit unions and what potential claims could be on the horizon. You’ll also examine some options for mitigating risks. Key Takeaways Review the current lawsuit trends. Understand the potential claims risks Explore options for mitigating risks. Register Now $295 Members | $395 Nonmembers(Additional $50 for USB)One registration gives your entire team access to the live webinar and on-demand recording until April 23, 2025Go to the Online Training Center to access the webinar after purchase » Who Should Attend NCCOs NCRMs Compliance and risk titles Education Credits NCRMs will recieve 1.0 CEUs for participating in this webinar NCCOs will recieve 1.0 CEUs for participating in this webinar Web NAFCU digital@nafcu.org America/New_York public
Monitoring the Latest Litigation Risks
Credits: NCCO, NCRM
Webinar
Add to Calendar 2024-04-23 09:00:00 2024-04-23 09:00:00 Operational Agility: Key Factors for Success in 2024 and Beyond Listen On: Key Takeaways: [02:34] A lot of people think of fraud losses and they are very mindful of what that means for their organization and their bottom line but we are thinking about it from a cost perspective beyond that. [06:38] When you should engage has a lot to do with how long it would take to potentially replace your current service provider. [10:45] Sidecar is not your primary core solution but it is something that allows you to go to market maybe under a different brand or different set of technology. [15:21] Focus on the tech stack maybe a little bit more than you used to. Enable that tech stack to allow you to be agile going forward and you will be able to focus a lot more on the member than running an IT shop Download SRM's Focus on Operational Agility to Achieve Success in 2024 Report Web NAFCU digital@nafcu.org America/New_York public
Operational Agility: Key Factors for Success in 2024 and Beyond
preferred partner
Strategic Resource Management
Podcast
The Bottom Line on Insurance Tracking and Collateral Protection
Strategy
preferred partner
Allied Solutions
Blog Post
Get daily updates.
Subscribe to NAFCU today.