WASHINGTON (5/21/13)--Plenty of news is swirling around recently approved and still-developing qualified mortgage changes, and this qualified mortgage (QM) news is featured in this week's edition of the Credit Union National Association's Regulatory Advocacy Report
While Consumer Financial Protection Bureau Director Richard Cordray recently encouraged credit unions to continue to write non-QM loans, as long as they are supported by strong underwriting, participants at a recent symposium said there is little investor appetite for non-QM loans in the secondary market.
The remarks were made by a representative of the Securities Industry Financial Market Association. CUNA also participated in the symposium, which focused on the future of housing finance and was sponsored by accounting firm PricewaterhouseCoopers.
Low secondary market interest in QM mortgages could mean that credit unions that write non-QM loans may face an increasing need to hold them in portfolio, rather than selling them into the secondary market, CUNA Deputy General Counsel Mary Dunn wrote.
"CUNA continues to strongly advocate for flexibility for credit unions to issue mortgages to well-qualified members, without regard to the QM rules, and is carrying this message to the National Credit Union Administration, the CFPB, the Federal Housing Finance Agency, and other regulators," she added.
Other topics addressed in this week's Regulatory Advocacy Report
- The results of the May NCUA open board meeting;
- FHFA notices on lender placed insurance, terms and conditions;
- JPMorgan Chase & Co. issues regarding collections practices;
- A Securities and Exchange Commission credit ratings roundtable; and
- CFPB escrow rule clarifications.
Employees or volunteers of CUNA- and state credit union league-member credit unions can sign up below to receive the Regulatory Advocacy Report.
The Regulatory Advocacy Report
is archived on cuna.org