The Consumer Financial Protection Bureau released assessment reports on its Ability-to-Repay/Qualified Mortgage (ATR/QM) and mortgage servicing rules Thursday. The Dodd-Frank Act required the bureau to assess the impact of both rules.
The ATR/QM rule was finalized in January 2013, and amended in May, July and October 2013. The Real Estate Settlement Procedures Act (RESPA) servicing rule was also finalized in 2013.
“We look forward to continuing our productive discussions with the Bureau and are prepared to provide any feedback necessary to secure positive modifications to the ATR/QM and Mortgage Servicing Rules,” said CUNA Chief Advocacy Officer Ryan Donovan. “We also anticipate working closely with CFPB leadership to ensure any rulemakings are appropriately tailored to address the practices of bad actors while also encouraging the bureau to exercise the exemption authority given to it by the Dodd-Frank Act to exempt good actors such as credit unions.”
Specifically, the ATR/QM rule describes the minimum standards that must be used to determine that consumers have the ability to repay the mortgages they are extended, providing eight specific factors to consider. It also defines the requirements for QMs and how QM status works.
CUNA addressed the need for changed in the ATR/QM rule in its letter sent to CFPB Director Kathy Kraninger after she was confirmed by the Senate in December.