WASHINGTON CUNA and NAFCU have joined with other trade associations and financial institutions in requesting additional modifications be made to the definition of “qualified residential mortgage” (QRM), along with other changes to a 505-page proposal currently out for comment.
Although credit unions are not directly affected by the rules mandated by the Dodd-Frank Act, CU trade associations believe credit unions will be indirectly affected as the secondary market conforms to new rules.
The U.S. Department of Housing and Urban Development, Federal Housing Finance Agency, Office of the Comptroller of the Currency, and the Securities and Exchange Commission joined the Fed and FDIC in releasing the proposed rule yesterday.
“NAFCU appreciates the agencies’ adherence to our call to align the definition of qualified residential mortgages’ with the CFPB’s definition of qualified mortgages,’ said NAFCU SVP of Government Affairs and General Counsel Carrie Hunt. "While the second proposal is an improvement to the first, we believe it will still have a negative downstream effect on credit unions. As such, we will thoroughly study the proposal and work with the FHFA and the other agencies to provide relief for credit unions from the rule¹s effect on their mortgage lending.”
