January 09, 2014

QM is here; NAFCU testifies Tuesday

NAFCU will take credit unions' concerns about CFPB's qualified mortgage/ability-to-repay regulations – which go into effect today – to Capitol Hill next week in testimony before the House Financial Services Subcommittee on Financial Institutions and Consumer Credit.

Daniel Weickenand, CEO of Orion FCU in Memphis and a NAFCU Board member, is slated to testify Tuesday for the association on the new rules and how they will affect prospective and current homeowners. The 10 a.m. hearing is titled "How Prospective and Current Homeowners Will Be Harmed by the CFPB's Qualified Mortgage Rule." The subcommittee is chaired by Rep. Shelley Moore Capito, R-W.Va.

NCUA and CFPB have been pushing out information on the r ules steadily over the past two weeks as today's compliance deadline neared. NCUA has sent a Letter to Credit Unions that shares the agency's supervisory guidance on the QM rule, and CFPB sent its own letter to credit unions providing a general overview.

Meanwhile, NAFCU President and CEO Dan Berger has written CFPB Director Richard Cordray to urge that the bureau take into the account the information NAFCU plans to provide as it monitors the rules' implementation and learns more about its impact on credit unions.

NAFCU's compliance division has posted several resources for following the new CFPB mortgage rules on the association's website and is addressing them regularly on the Compliance Blog.