RichardCordray, director of the Consumer Financial Protection Bureau, has urged credit unionsnot to fear the bureau's current mortgage regulations but to keepon making housing finance loans.
|Cordray's reassurances appeared in an opinion piece which ran inthe March 11 National Mortgage News under the headline“Credit Unions, On Whole, Are Responsible Lenders.”
|“I know that complying with our new regulations is a worry formany of you. So allow me to make a few points clear,” Cordraywrote. “First, the criteria for qualified mortgages are intended todescribe only the least risky loans that can be offered toconsumers. But plenty of responsible lending remains availableoutside of the qualified mortgage space, and we encourage you tocontinue to offer mortgages to those borrowers you can evaluate asposing reasonable credit risk. Those that lend responsibly – likecredit unions – have no reason to fear the ability-to-repay rule.”
|Cordray also wrote that the agency understood that credit unionsmight be cautious about making housing loans outside of qualifiedmortgage loans, but he urged credit unions to be confident of theirown operations.
|“Of course, we understand that some of you-or your boards orlending committees-may be initially inclined to lend only withinthe qualified mortgage space, maybe out of caution about how theregulators would react,” he added. “But you should have confidencein your strong underwriting standards, and you should not beholding back.”
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