Newsroom
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.
Share This
Related Resources
Add to Calendar 2023-09-22 14:00:00 2023-09-22 14:00:00 Understanding Credit Card Portfolio Sales & Agent Programs Both credit union and bank credit card issuers are under intense pressure from various sources, including competitor innovation, significant internal resource commitments, increasing operating expenses, uncertain regulatory and economic environments and a variety of capital and liquidity constraints. This has led to about 80% of all banks offering credit cards under an ‘agent issuing’ model, where a third-party issues credit cards under the financial institution’s name. While hundreds of credit unions do the same, and interest in this option has increased in the last two years, the majority of credit unions still own and manage this product themselves. Deciding whether this option can meet strategic, financial and member needs can be difficult to untangle. In this webinar, Understanding Credit Card Portfolio Sales & Agent Programs, you’ll delve into the structure of such programs, the financial and risk-profile impacts of such a decision, the contractual commitments required of both parties and discover evaluation tips and processes for any credit union that would like to evaluate this path. Key Takeaways Discover the structure of the agent issuing concept and obligations of both parties Understand the financial impact of entering such a program to the balance sheet, income statement, and critical performance ratios Ascertain the impacts to members, including both positive and negative possibilities Review the accompanying contractual structures and key considerations Develop an evaluation process that best protects the credit union’s financial and other outcomes Register Now $295 Members | $395 Nonmembers(Additional $50 for USB)One registration gives your entire team access to the live webinar and on-demand recording until September 22, 2024.Go to the Online Training Center to access the webinar after purchase » Who Should Attend COOs CFOs NCCOs and compliance titles NCRMs and risk titles General counsel staff Education Credits NCCOs will receive 1.0 CEUs for participating in this webinar NCRMs will recieve 1.0 CEUs for participating in this webinar CPA credit information is below; recommended 1.0 CPE credits. CPA Certification Credit Information Reviewer: Josie Collins, Senior Associate Director of Education, NAFCU Learning Objectives: See key takeaways Program Level: Basic Prerequisites Needed: None Advance Preparation Needed: None Delivery Method: Group Internet-Based Recommended CPE Credits: 1.0 credits Recommended Field of Study: Regulatory Ethics – Technical About Our Webinars Our webinars are streamed live from NAFCU headquarters near Washington, DC. Your audio/video feed of the presenters includes presentation slides and downloadable handouts. You can easily submit your questions to the presenters at any time during the live broadcast, with no dialing over the phone! The audio and video stream directly through your computer. Web NAFCU digital@nafcu.org America/New_York public
Understanding Credit Card Portfolio Sales & Agent Programs
Credits: NCCO, NCRM, CPE
Webinar
Building a brighter financial future with consumer trust
Strategy
preferred partner
TruStage
Blog Post
BSA Pulse – September 2023
Articles
Get daily updates.
Subscribe to NAFCU today.