Four federal regulators, including the NCUA, said in a jointstatement sent to financial institutions on Friday that the CFPB'snew mortgage rules are compatible with the Community ReinvestmentAct.

“The agencies recognize that some institutions may originateonly or predominantly QMs, particularly when the bureau'sAbility-to-Repay Rule first takes effect. In fact, the agenciesnote that some institutions' existing business models are such thatall of the loans they originate satisfy the requirements for QMs,”said the guidance.

“The requirements of the bureau's Ability-to-Repay Rule and thefair lending laws are compatible. Similarly, the requirements ofthe bureau's Ability-to-Repay Rule and CRA are compatible.Accordingly, the agencies that conduct CRA evaluations do notanticipate that institutions' decision to originate only QMs,absent other factors, would adversely affect their CRAevaluations,” it said.

Under the CRA, the agencies are required to assess theperformance of financial institutions in addressing the creditneeds of their communities, including “low and moderate-incomeneighborhoods, consistent with safeandsound operations.”

The Fed, the FDIC, the NCUA and the Office of the Comptroller of the Currencyissued the guidance.

“The agencies recognize that many institutions are in theprocess of assessing how to implement the bureau's Ability-to-RepayRule. The agencies emphasize that institutions may originate bothQMs and non-QMs, based on their business strategies and riskappetites. Residential mortgage loans will not be subject tosafety-and-soundness criticism based solely on their status as QMsor non-QMs,” said the statement.

“Regardless of whether residential mortgage loans are QMs ornon-QMs, the agencies continue to expect institutions to underwriteresidential mortgage loans in a prudent fashion and address keyrisk areas in their residential mortgage lending, including loanterms, borrower qualification standards, loan-to-value limits, anddocumentation requirements.”

The rules take effect on Jan. 10, 2014.