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NAFCU, trades urge CFPB to delay QM rulemaking
NAFCU, along with nine other organizations, urged CFPB Director Kathy Kraninger to delay the bureau's rulemaking on the definition of qualified mortgage (QM) in the wake of the ongoing coronavirus pandemic. The CFPB has previously indicated it will soon release a proposal to amend its QM rule no later than May 2020.
“Releasing the notice of proposed rulemaking (NPR), or allowing the GSE patch to expire during this national emergency, would significantly impact the housing market and would threaten to further dislocate an already fragile housing market,” wrote the coalition in a letter sent Monday.
The coalition, comprised of diverse housing finance stakeholders and organizations, also noted that industry participants would not be able to provide meaningful feedback to the bureau should it proceed with the QM rulemaking at this time, given the unprecedented events surrounding the coronavirus national emergency.
In addition, the group suggested that the bureau extend the temporary government-sponsored enterprise (GSE) QM patch until January 2022, or one year from finalization of any proposed rule following an appropriate notice and comment time period. The CFPB has indicated it has plans to let the GSE patch expire in 2021, with the possibility of a short-term extension to support the transition.
This letter comes following NAFCU President and CEO Dan Berger's and Executive Vice President of Government Affairs and General Counsel Carrie Hunt’s conversation with Kraninger and other bureau senior staff earlier this month, during which they reiterated credit unions' need for regulatory relief and requested the bureau hold off on the rulemaking.
Berger and Hunt had called for a delay of rulemakings from the CFPB to ensure credit union resources can be full dedicated to serving members, along with a request to modernize the electronic disclosure and signature-related provisions of all its regulations.
The bureau has taken several steps to support financial institutions and consumers affected by coronavirus, including guidance on credit reporting requirements; relief from some reporting under the Home Mortgage Disclosure Act and Regulation C, as well as the Truth in Lending Act, Regulation Z and Regulation E; and encouragement to promote small-dollar lending and for financial institutions to work with borrowers.
As the industry's Washington Watchdog, NAFCU will continue to work with the CFPB and other regulators to ensure a regulatory environment that allows credit unions to serve their members throughout coronavirus relief efforts.
NAFCU has several resources available online to assist credit unions, including an updated summary table of regulator actions, detailing actions taken by agencies to provide guidance and relief to financial institutions.