NAFCU statement on Federal Reserve Board’s approval of final QRM rule

WASHINGTON (October 22, 2014) – National Association of Federal Credit Unions (NAFCU) Director of Regulatory Affairs Mike Coleman issued the following statement in response to the Federal Reserve Board’s approval today of the interagency rule defining “qualified residential mortgages” and setting a 5 percent risk retention requirement on securitizers of non-QRM loans.

“NAFCU supports the interagency determination to align the final QRM rule with the definition of qualified mortgage set by CFPB. We believe this will minimize unnecessary hurdles and obstacles for credit unions and other mortgage market participants,” said Coleman. “However, we remain concerned about elements of both definitions and strongly encourage the agencies to reconsider the effects each would have on mortgage lending.”

On Tuesday, the Federal Deposit Insurance Corporation (FDIC) became the first regulatory agency to approve the interagency rule.

Other agencies in the rulemaking include the Federal Housing Finance Agency, Office of the Comptroller of the Currency, Securities and Exchange Commission and Department of Housing and Urban Development.

NAFCU will continue to study the rule for its potential impact on credit unions and their members as participants in the secondary mortgage lending market.

About Us:
The National Association of Federal Credit Unions is the only national trade association that exclusively represents the interests of federally chartered credit unions before the federal government and the public.

More News