Credit union trade association representatives were told duringa Consumer Financial Protection Bureau industry briefing Thursdaythat recent rules defining qualified mortgages aren't intended topressure lenders into meeting QM standards on all mortgages.
|Both NAFCU and CUNA, which had representatives at the meeting,reported the clarification.
|NAFCU reported that CFPB Director Richard Cordray said it would be a mistake for prudentialregulators to examine institutions in a way that steers them towardonly providing mortgages defined as qualified under the ability-to-repay rule, which was finalized Jan. 10.
|CUNA said Cordray stressed that some borrowers who are in goodfinancial standing but may not meet the parameters of a QM shouldnonetheless be allowed to obtain a mortgage.
|CFPB staff also said they expect the percentage of qualifiedmortgages in the market to decline after an exemption for loanspurchased by Fannie Mae and Freddie Mac expires after seven years,or when the GSEs are no longer in conservatorship.
|Cordray will testify Thursday, Feb. 14 before the Senate Banking Committee on Dodd-Frank Actimplementation.
|That hearing, titled “Wall Street Reform: Oversight of FinancialStability and Consumer and Investor Protections,” also featuresregulators from the FDIC, Securities and Exchange Commission andthe Federal Reserve, among others; however, the NCUA was notincluded on the witness list.
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