CFPB Director Richard Cordray told Realtors on Tuesday credit unions will continue to offer mortgages that don't conform to the CFPB's qualified mortgage rule that takes effect on Friday.

"Qualified mortgages cover the vast majority of loans made in today's market, but they are by no means all of the mortgage market.  This point is quite important, and it should not be misunderstood. These lenders, including many of our community banks and credit unions, have seen the strong performance of their loans over time," Cordray said on Tuesday before the National Association of Realtors in Washington.

"Nothing about their traditional lending model has changed, and they should continue to offer such mortgages to borrowers whom they evaluate as posing reasonable credit risk – whether or not they meet the criteria to be classified as Qualified Mortgages," he added.