November 19, 2015

House passes bills for QM relief, CFPB auto-lending guidance

The House today passed two bills that would provide a NAFCU-sought safe harbor from certain qualified mortgage requirements and, respectively, nullify CFPB's 2013 bulletin on indirect auto lending.

The NAFCU-backed "Portfolio Lending and Mortgage Access Act," H.R. 1210, would provide a safe harbor from certain qualified mortgage requirements for residential mortgage loans held on a mortgage originator's portfolio. The measure was approved by the House Financial Services Committee in July. The House passed the bill this afternoon in vote of 255-174.

H.R. 1210 was introduced by Rep. Andy Barr, R-Ky., in March and has 54 cosponsors. It has yet to clear or find a companion measure in the Senate, and the White House has said the president would veto the bill if it reaches him.

The "Reforming CFPB Indirect Auto Financing Guidance Act," H.R. 1737, would require that CFPB replace its 2013 bulletin with specific guidance on indirect auto lending. The House passed the bill on a vote of 332-96.

NAFCU has raised concerns about the CFPB's current approach; the bulletin issued says indirect lenders such as credit unions are liable for fair lending violations made by auto dealers.

H.R. 1737 was introduced by Rep. Frank Guinta, R-N.H., and has a bipartisan group of 166 cosponsors. Original cosponsors include Reps. Ed Perlmutter, D-Colo., Marlin Stutzman, R-Ind., David Scott, D-Ga., Steve Stivers, R-Ohio, Brad Sherman, D-Calif., Daniel Kildee, D-Mich., and Joyce Beatty, D-Ohio.