Removing Barriers Blog

CFPB Will Hold Comment Period to Assess ATR and QM Rule
Posted June 26,2017 by CUNA Advocacy

Yesterday, the CFPB released its intent to hold a public comment period to assess the effectiveness of the Ability-to-Repay/Qualified Mortgage rule (ATR/QM rule).   

Prior to the financial crisis, not all lenders evaluated a borrower’s ability to repay and unfortunately this was one of the factors that led to the collapse of the housing market and the many bailouts that followed.  Once Congress passed the Dodd-Frank Act, new standards in mortgage lending including the ability-to-repay and the Qualified Mortgage rules were implemented. 

While credit unions generally did not participate in the risky behavior that contributed to the housing crisis, they have had to comply with the new rules and regulations created in response.  Unfortunately, compliance with these rules is often overly burdensome and difficult for credit unions and community financial institutions. 

CUNA applauds the CFPB for taking the time to reevaluate and accept constructive feedback on the ATR/QM rule.  CUNA will continue to advocate on behalf of America’s credit unions and their 110 million members in order to allow credit unions to better serve their members.  The comments will be due 60 days after it is published in the Federal Register.