WASHINGTON (1/9/14)--Consumer Financial protection Bureau Director Richard Cordray again confirmed that credit unions will be permitted to make non-qualified mortgage (QM) loans, and reiterated that the bureau will reexamine its regulations to determine their impact on financial institutions, in comments made ahead of this week's new mortgage rule effective date.
In remarks reported in The Daily Caller, Cordray noted that QMs cover the vast majority of mortgage loans, but do not represent all of the mortgage market. Credit union mortgages have seen strong results over time, he added.
Cordray also sought to allay fears about burdens created by the impending regulations in a USA Today editorial. The bureau, he said, will not require loads of red tape: "Lenders will likely ask a potential home buyer for proof of things such as income or assets--the kinds of things responsible lenders like our good community banks and credit unions have been asking for all along," Cordray wrote.
And, as reported in American Banker, Cordray told attendees at a National Association of Realtors discussion that the CFPB will listen to the concerns of credit unions, financial institutions, realtors and others after the new mortgage rules become effective. The CFPB will react to changes in the market, he said.