CUNA and NAFCU said Thursday they are pleased the Consumer Financial Protection Bureau added a safe harbor provision to its final qualified mortgage rule.
Specifically, the rule announced by the bureau earlier in the day provides a legal safe harbor that limits civil actions against prime qualified mortgage loans, but also requires documentation of the borrower's ability to repay.
“Credit unions have been and continue to be responsible lenders who work to meet their members' needs with safe and sound products,” said NAFCU President/CEO Fred Becker. ”The safe harbor is preferable for all parties involved in a mortgage loan transaction as it provides clarity and certainty, and consequently discourages frivolous lawsuits, claims or defenses.”
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