Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

HUD Reportedly Developing Its Own QM Rule For FHA Loans
WASHINGTON (3/5/13)--The U.S. Department of Housing and Urban Development (HUD) is reportedly reviewing recently released qualified mortgage (QM) rules, and may publish a QM rule of its own.

Credit Union National Association Associate General Counsel Jared Ihrig noted that the Dodd-Frank Wall Street Reform Act gave HUD, the Federal Housing Administration and other agencies the authority to review QM rules released by the Consumer Financial Protection Bureau. They may also issue their own rules if necessary, he added.

Ihrig said any HUD proposal will likely impact credit unions that make FHA loans, and noted that CUNA will watch for future regulatory action in this area.

The CFPB's ability-to-repay rule, with its associated QM definition, were ordered by the Dodd-Frank Act and are intended to curb abusive lending practices, like those that lead to the nation's housing market crash, and to allow responsible lending practices to "flourish." Under the ability-to-repay/QM rule, mortgage loans that meet the criteria for a QM will be afforded a higher degree of legal protection than other mortgages, should a lender be sued by a consumer for noncompliance with the ability-to-repay provisions.
RSS print
News Now LiveWire
African financial inclusion possible with mobile money: @IMFNews study
15 minutes ago
Louise Herring's birthday is Saturday. 105 years later, her legacy lives on through her kids
1 hours ago
#Creditunions in PA and NJ hosted retirement fairs this week @PCUA and @NJCUL report.
1 hours ago
.@TheCCUL's Radebaugh suggests 2nd #RBC comment period in letter to @TheNCUA #NewsNow
2 hours ago
#NewsNow today Herring legacy carried forward with merger
4 hours ago