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NAFCU Statement on CFPB Qualified Mortgage Rule
Washington – National Association of Federal Credit Unions (NAFCU) President and CEO Fred R. Becker Jr. today made the following statement regarding the Consumer Financial Protection Bureau (CFPB) issuing its final rule on the standard for a qualified mortgage within the ability-to-repay rule.
“NAFCU appreciates the CFPB including the safe harbor provision. We have strongly urged that the final qualified mortgage provisions include a safe harbor to limit civil actions against lenders that fully comply with the qualified mortgage standard, so we appreciate that the rule addresses our concerns. Credit unions have been and continue to be responsible lenders who work to meet their members’ needs with safe and sound products. The safe harbor is preferable for all parties involved in a mortgage loan transaction as it provides clarity and certainty, and consequently discourages frivolous lawsuits, claims or defenses.
“However, we continue to have concerns about the rule and its impact on credit unions. In our view, a rigid approach to regulation is counterproductive, often unworkable and frequently leads to unwanted results. We are concerned that the rule could curtail lending by credit unions, and ultimately, negatively impact consumers by limiting the choices of prudent lenders in the mortgage market.
“As the rule is likely to have greater effect on smaller institutions, NAFCU will continue to pursue avenues and solutions that will limit the rule’s impact on credit unions, including seeking an exemption for small, federally insured lenders.
“We will continue to work with the CFPB and the other regulators to mitigate and reduce unnecessary regulatory burden on credit unions.”
About Us:
The National Association of Federal Credit Unions is the only national organization that focuses exclusively on federal issues affecting credit unions, representing its members before the federal government and the public.