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May 25, 2016
NCUA materials give QM changes for rural, underserved areas
NCUA Board Chairman Rick Metsger on Wednesday issued a chart and summary explaining the changes made by CFPB that broaden the availability of certain qualified-mortgage rule exceptions for small creditors that operate in rural and underserved areas. The changes went into effect March 31.
In his regulatory alert sent to credit unions, Metsger said the agency's "chart and summary explain the changes, and the summary discusses steps to take if your credit union relies on provisions applicable to small creditors or creditors operating in a rural or underserved area."
CFPB in March issued an interim rule that allows more small creditors operating in rural and underserved areas to originate balloon-payment qualified and high-cost mortgages. It also expands availability to those lenders of an escrow account exemption related to high-cost loans.
The interim rule provisions apply to CFPB's ability-to-repay mortgage rule, which prescribes QM requirements; its rule implementing the Home Ownership Equity Protection Act; and its escrow rule.
NAFCU welcomed the changes as it allows more credit unions to take advantage of special benefits for small creditors within the QM rules.
In his regulatory alert sent to credit unions, Metsger said the agency's "chart and summary explain the changes, and the summary discusses steps to take if your credit union relies on provisions applicable to small creditors or creditors operating in a rural or underserved area."
CFPB in March issued an interim rule that allows more small creditors operating in rural and underserved areas to originate balloon-payment qualified and high-cost mortgages. It also expands availability to those lenders of an escrow account exemption related to high-cost loans.
The interim rule provisions apply to CFPB's ability-to-repay mortgage rule, which prescribes QM requirements; its rule implementing the Home Ownership Equity Protection Act; and its escrow rule.
NAFCU welcomed the changes as it allows more credit unions to take advantage of special benefits for small creditors within the QM rules.
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