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
CUs Receive QM, non-QM Guidance from NCUA
ALEXANDRIA, Va. (1/7/14)--National Credit Union Administration field staff "will take into account a credit union's good-faith efforts to comply" with new qualified mortgage regulations as they conduct their early-stage examinations, the agency said in a supervisory letter to credit unions (14-CU-01) released Monday.

"As CUNA has been advocating for some time, NCUA has now put into writing that it will take into account, during examinations, credit unions' good faith efforts to comply with the new mortgage rules," Credit Union National Association Deputy General Counsel Mary Dunn said.

"Coupled with the guidance issued last week CUNA also sought--in which NCUA made it clear that it would not expect credit unions to make only 'qualified mortgage' loans--credit unions can structure mortgage loans to meet members' needs and do not have to fear they will be written up for noncompliance with the new mortgage rules as they are working to meet their compliance responsibilities," she added.

The agency letter said NCUA field staff will place particular emphasis on the safety and soundness implications of mortgage lending. Whether a credit union originates Qualified or non-Qualified Mortgages, "examiners will be evaluating credit risk, liquidity risk, and concentration risk," the agency added.

NCUA Chairman Debbie Matz in the letter emphasized that non-QM lending "can be an effective member service if conducted safely and soundly." The agency, she said, "will not subject a mortgage to safety-and-soundness criticism solely because of the loan's status as a QM or non-QM.

However, "credit unions choosing to make non-QMs will need to take into account the potential new market and legal risks," Matz added.

The new QM rule becomes effective on Jan. 10, and will apply to all federally insured credit unions.

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

NCUA Letter 14-CU-01
RSS





print
News Now LiveWire
.@NACHAOnline report: ACH volume increases to 23B payments in 2014 http://t.co/va2WYMh4Zv
8 hours ago
.@CUNA's @HampelBill in @washingtonpost on options for wary mortgage borrowers: http://t.co/CPSgTNgwmm
13 hours ago
Housing starts thaw, mortgage rates stand pat #Market #NewsNow http://t.co/hhPj5v5AH3
14 hours ago
.@CUNA files #RBC2 comment, urges #CU system to be heard #NewsNow http://t.co/yfoZHAMlZc
14 hours ago
#NewsNow Youth Month attracts 100,000th member for Mich. CU http://t.co/cgF5o83XlK
15 hours ago