ALEXANDRIA, Va. (1/2/14, UPDATED: 3:20 P.M. ET)--Credit unions that make closed-end consumer loans secured by a dwelling must comply with the Consumer Financial Protection Bureau's new Ability-to-Repay/Qualified Mortgage (ATR/QM) rule for loan applications received on or after Jan. 10, the National Credit Union Administration reminds in its first Regulatory Alert on 2014.
The rule requires credit unions to assess a member's ability to repay for virtually all closed-end residential mortgage loans secured by the member's dwelling and provides your credit union with certain protections from legal liability for compliance with the rule, the agency said in a release.
The NCUA alert includes details on:
A supervisory letter with compliance guidance for credit unions and instructions for agency examiners will be released soon, the agency added.
NewsNow will feature more on this release in tomorrow's issue.