Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
NCUA, Regulators Release QM Guidance
ALEXANDRIA, Va. (12/16/13)--Residential mortgage loans will not be subject to safety-and-soundness criticism solely because of their status as Qualified Mortgage or Non-qualified Mortgage loans, the National Credit Union Administration and other federal financial regulators said in guidance released on Friday.

The guidance addresses Ability-to-Repay and Qualified Mortgage standards set to go into effect on Jan. 10. The NCUA, Federal Reserve Board, the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency issued a joint statement to clarify safety-and-soundness expectations and Community Reinvestment Act (CRA) considerations related to QM and non-QM loans offered by regulated institutions.

In the release, the agencies said they continue to expect institutions to underwrite residential mortgage loans in a prudent fashion and address key risk areas in residential mortgage lending, including:
  • Loan terms;
  • Borrower qualification standards;
  • Loan-to-value limits;
  • Documentation requirements; and
  • Portfolio- and risk-management practices.
These standards apply regardless of whether a residential mortgage loan is a QM or non-QM loan, they said.

Agencies responsible for conducting CRA evaluations do not anticipate that financial institutions' decision to originate only Qualified Mortgages, absent other factors, would adversely affect their CRA evaluations.

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

Joint Agency Guidance
RSS print
News Now LiveWire
P2P mobile payments draw millennials' interest via @BloombergNews http://t.co/uoO2anjCsV
32 minutes ago
#creditunion CEO confidence continues upward trend #NewsNow http://t.co/gi1IamDlA8
50 minutes ago
.@NJCUL to hold info session for #cugreenloans in Sept. See #NewsNow http://t.co/5h65CplhS9
1 hours ago
.@TheCCUL meets with rep of @SenatorTimScott http://t.co/7uBfUrex30
1 hours ago
Save to Win hits $1M in savings at 6 Wash. #creditunions #NewsNow http://t.co/Hbs3bnESuj
2 hours ago