WASHINGTON (11/17/15)--CUNA is encouraging U.S. House lawmakers to vote yes this week on a measure that would remove barriers for credit unions. The Portfolio Lending and Mortgage Access Act (H.R. 1210) would allow credit unions, and other lenders, to treat mortgages held in portfolio as qualified mortgages (QM) for purposes of the Consumer Financial Protection Bureau’s (CFPB) mortgage lending rules.
"Treating loans that financial institutions hold on their balance sheets as a QM loan is appropriate because the lender retains all of the risk involved with these mortgages and is subject to significant safety and soundness supervision from its prudential regulator," CUNA President/CEO Jim Nussle wrote Monday.
If this change is enacted, Nussle explained, it would provide meaningful regulatory relief for credit unions, and would allow them to more fully serve their members. Nearly three-quarters of mortgage-originating credit unions retain their mortgages in portfolio, and the mortgages these credit unions originate represents approximately 60% of all credit union first mortgage originations.
Mortgage lending, Nussle noted, is a key service that credit unions provide to their members.
The house is expected to vote on H.R. 1210 Wednesday or Thursday. The measure was approved, with CUNA's strong support, by the house Financial Services Committee in July by a 38-18 vote.
(See related story: This week for CUs: QM bill, FOM proposal, NCUA budget and more.)