April 23, 2014

CFPB may review QM points-and-fees requirement

April 24, 2014 – NAFCU is in contact with CFPB over reports that the bureau may ease its treatment of affiliated fees under its qualified mortgage rule.

American Bankerreported that "CFPB appears likely to ease its interpretation of affiliated fees, allowing transactions that are passed through an affiliate to a third party provider to be excluded."

NAFCU is supportive of such a change and has said so in its discussions with bureau staff on mortgage servicing and qualified mortgage issues. CFPB's points-and-fees regulation sets a 3 percent points-and-fees cap for qualified mortgages.

The Banker says this issue hinges in part on a provision of the Dodd-Frank Act that says fees "retained by" affiliates should be in the points-and-fees test for a qualified mortgage. It notes CFPB's language states fees "paid to" and says the agency may clarify to match the statute.

NAFCU will keep members apprised of ongoing discussions with CFPB.