Jerry Reed, chief lending officer for the $5.3 billion Alaska USA FCU, will tell the House Subcommittee on Financial Institutions and Consumer Credit during a hearing set for Tuesday that the Consumer Financial Protection Bureau's qualified mortgage rule could severely restrict lending.
"Credit unions worry that the QM rule will make it all but impossible for credit unions to write non-QM loans because the standard, designed to be an instrument of consumer protection, may serve as an instrument of prudential regulation, effectively setting a bureaucratic standard for loan quality," Reed said in his prepared testimony.
He added that the Anchorage, Alaska-based credit union has significant concerns that NCUA examiners will determine that non-QM loans are a safety and soundness concern and could assign a riskier CAMEL rating to credit unions that keep the loans on their books.
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