Credit Unions Comment on Final 'QM' Rule by CFPB

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Patrick Keefe – CUNA Communications; (202) 508-6765;

Comment by Credit Union National Association (CUNA) President and CEO Bill Cheney on “Qualified Mortgage” Final Rule by CFPB

Support for CFPB steps to ensure continued mortgage availability.

MADISON, Wis. (01/10/2013) - We support the agency’s steps to minimize disruptions in the availability of mortgage credit for consumers. CUNA strongly supported a “safe harbor” approach for “QM” loans that would provide the maximum legal protection to credit unions under the “ability to repay” rule. The approach the CFPB is taking under the final rule is that lower-priced loans – that is, those provided to consumers who are generally considered less risky and which conform to the QM standards -- will be given a safe harbor. Higher-priced loans will still be entitled to a rebuttable presumption that the lender complied with the rule, should the borrower challenge the loan in court. This approach should provide legal certainty to lenders such as credit unions.

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