May 17, 2018

Mulvaney signals review of CFPB's qualified mortgage rule

CFPB headquartersCFPB Acting Director Mick Mulvaney earlier this week indicated that the bureau would review its qualified mortgage rule as part of efforts to "look at unduly and overly burdensome regulations." NAFCU continues to work with lawmakers and the CFPB to bring about regulatory relief for credit unions under the rule.

Mulvaney commented on the rule, saying "if you think you can have a one-size-fits-all rule for every single mortgage, you don't understand the mortgage business." He highlighted the difference between some mortgage providers such as Quicken Loans making a loan to an applicant and a local credit union giving a loan to longtime member.

Mulvaney made the comments at the National Association of Realtors conference Tuesday.

Last year, the CFPB announced it would be assessing the effectiveness of its qualified mortgage rule and would issue a final report on its findings by Jan. 10, 2019. NAFCU and its members have told the CFPB repeatedly about the growing cost of mortgage lending due to the CFPB's rule and the negative effect it has had on credit unions' origination volumes, profitability and member satisfaction.

The NAFCU-backed Economic Growth, Regulatory Relief and Consumer Protection Act (S. 2155), which is expected to be voted on in the House next week, includes a provision to provide a safe harbor from certain qualified mortgage requirements for residential mortgage loans held on a mortgage originator's portfolio. These provisions were also included in another NAFCU-backed bill that passed out of the House in March.

NAFCU also continues to advocate for Senate action on the Mortgage Choice Act (H.R. 1153), which passed out of the House in February. The legislation would adjust Truth in Lending Act (TILA) mortgage rules by exempting from the qualified mortgage cap on points and fees any affiliated title charges and escrow charges for taxes and insurance.