Five banking and credit union regulators issued a joint statement Tuesday stating that lenders who provide qualified mortgages should not be concerned about inadvertently violating the fair-lending law known as the Equal Credit Opportunity Act.
"Lenders have been worried that they could be cited for discrimination, even if it's unintentional, if they only seek to provide QM loans, noting that many minorities would not qualify for that status according to recently released statistics," writes American Banker's Rachel Witkowski.
"The agencies do not anticipate that a creditor's decision to offer only Qualified Mortgages would, absent other factors, elevate a supervised institution's fair lending risk," the regulators said in their statement.
The statement was issued by the Federal Reserve Board, the Consumer Financial Protection Bureau, the Federal Deposit Insurance Corp, the Office of the Comptroller of the Currency and the National Credit Union Administration.
For the full piece see "Following QM Will Not Spur Fair Lending Charges: Regulators" (may require subscription).