Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

Washington
Regulators Say QM Offerings Will Not Elevate Fair Lending Risk
WASHINGTON (10/23/13)--Offering only Qualified Mortgages "would not, absent other factors, elevate a supervised institution's fair lending risk," the National Credit Union Administration and other federal financial regulators said in a Tuesday joint statement.

The statement came in response to creditor questions to the agencies. Creditors, the regulators said, have asked for clarity regarding whether the disparate impact doctrine of the Equal Credit Opportunity Act (ECOA) and its implementing regulation, Regulation B, allows them to originate only QMs. Credit Union national Association representatives, including Deputy General Counsel Mary Dunn, raised this issue as recently as last week in meetings with the with the Consumer Financial Protection Bureau and NCUA.

The CFPB issued standards to define QMs under the agency's "ability to repay" rules, and mortgage servicing rules, in January.

In the joint release, the agencies noted that "the decisions creditors will make about product offerings in response to the Ability-to-Repay Rule are similar to decisions creditors have made with regard to other significant regulatory changes affecting particular types of loans."

Creditors, they said, "should continue to evaluate fair lending risk as they would for other types of product selections, including by carefully monitoring policies and practices and implementing effective compliance management systems." The same principles apply in determining compliance with the Federal Housing Agency and its implementing regulation, the release added.

The Federal Reserve Board, CFPB, Federal Deposit Insurance Corp., NCUA and the Office of the Comptroller of the Currency co-signed the joint statement.

For the full release, use the resource link.
Other Resources

Joint Agency Release
RSS





print
News Now LiveWire
CU Effect: @StLouisComm collaborates to save homes with FHLB grant #NewsNow http://t.co/fxX8EhouUj
20 minutes ago
#NewsNow March 31 deadline for Biz Kid$ fin. ed grant application http://t.co/5AD5ZYPLEU
1 hour ago
.@CUNA sends letters on @RepAndyBarr QM bill, @RepMickMulvaney @NCUA budget transparency bill #NewsNow http://t.co/cRAk46ALeD
2 hours ago
The U.S. Court of Appeals restored NCUA lawsuit v. Barclays Capital that charged misrepresenting quality of $550M IN RMBS. See News Now Wed.
16 hours ago
Registration is now open for the online livestreaming of @TheNCUA March 19 open board meeting. http://t.co/yOuqdXHlxj
21 hours ago