NAFCU Statement on CFPB’s Amendments to Ability-To-Repay Rule
WASHINGTON, DC (May 29, 2013) National Association of Federal Credit Unions (NAFCU) President and CEO Fred R. Becker Jr. made the following statement today regarding the Consumer Financial Protection Bureau (CFPB) release of revisions to its Ability-to-Repay rule. The rule generally extends Qualified Mortgage status to certain loans that creditors hold in portfolio, even if the consumer’s debt-to-income ratio exceeds 43 percent. The final rule allows small creditors to charge a higher annual percentage rate for certain first-lien Qualified Mortgages while maintaining a safe harbor for the Ability-to-Repay requirements.
“NAFCU appreciates the CFPB making these revisions, and we will see if they go far enough to ease the requirements so that credit unions will feel confident in continuing to offer qualified mortgages to their members. Credit unions have been and continue to be readily recognized as responsible, prudent lenders.They know their members and their circumstances well and work with them to provide the right mortgage for their needs and should be allowed to continue to do so.
“We will continue to review these revisions and continue to push for additional changes, especially in regards to debt-to-income ratio and points and fees.”
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.