QRM Definition Creates CU Apathy
The definition of what or will not constitute a qualified residential mortgage may be the most important and least appreciated or understood financial regulation facing credit unions this year.
That is part of the message that CUNA Mutual Mortgage Insurance and CUNA have been trying to drive home to CUs as the comment period on the proposed definition comes to a close on August.
The executives on the call stressed that credit unions overall support the notion of having mortgages that are designated as the most safe and rewarding those mortgages with a lighter regulatory and lending burden. But they argued that regulators had overstepped the intention of Congress in the proposed rule, noting that Congress had not put any down payment requirements into the legislation.
“Congress did not include any down payment requirement because they understood that a higher down payment does not guarantee a safer mortgage loan,” said Mary Dunn, deputy general counsel for CUNA. Instead, she argued that credit unions already understand that sound underwriting is what makes for the best mortgage loans.