WASHINGTON (10/5/13)--What factors should the U.S. Department of Housing and Urban Development (HUD) take into consideration as it sets points and fees limits for its pending qualified mortgage (QM) definition? Credit unions can take on this and other questions in a new Credit Union National Association comment call.
HUD is required under the Dodd-Frank Act to issue its own qualified mortgage rule, separate from the one issued earlier this year by the Consumer Financial Protection Bureau (CFPB). Once finalized, HUD's WM rule will replace the CFPB's QM definition for Federal Housing Administration (FHA) loans or certain other HUD insured loans. HUD expects to finalize and have its QM rule become effective on Jan. 10, at the same time as the CFPB's QM rule takes effect.
The HUD definition would be similar to the CFPB definition, with some distinct differences. For instance, HUD's proposed rule does not have a debt-to-income ratio requirement.
HUD's proposed rule would:
HUD is seeking comment from lenders participating in its programs on any issues specific to HUD's mortgage insurance and loan guarantee programs. Many of these issues are addressed in the CUNA comment call.
Other topics addressed in the comment call include:
CUNA is accepting comments until Oct. 15. Comments are due to HUD by Oct. 30.
For the full comment call, use the resource link.