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CUNA: CFPB Changes Move QM In Positive Direction
WASHINGTON (6/3/13)--Recent Consumer Financial Protection Bureau changes to ability-to-pay/qualified mortgage (QM) rules are a step in the right direction, Credit Union National Association President/CEO Bill Cheney said in this week's edition of The Cheney Report.

The changes include:
  • The creation of a transitional period when small lenders can make balloon mortgage loans under certain conditions. These balloon mortgage loans would still qualify as QM loans; and
  • Extending QM status to held loans that are made by credit unions and community banks that have less than $2 billion in assets and make 500 or fewer first-lien mortgages annually, even if the borrower's debt-to-income ratio exceeds the rule's 43% QM threshold.
"Both changes will be helpful to credit unions and respond to concerns we have repeatedly raise," Cheney wrote. (For more on these changes, see the May 30 News Now story: CFPB Issues Exemptions To Ability-to-Repay Rule.)
CUNA continues to review these changes to gauge their full impact on credit unions, Cheney added.
These and other changes were discussed in a meeting between Cheney and CFPB Director Richard Cordray last week. "He wanted to highlight several key changes and exemptions that ease the rule's impact on credit unions," Cheney noted. The two leaders in that meeting also addressed a broad range of topics, including payday loans and overdrafts.
"The best thing we can do is to continue to educate Cordray and the CFPB about the great things credit unions are doing for their members," Cheney said.
This week's Cheney Report also includes:
  • An update on tax advocacy efforts;
  • CUNA comments on Financial Accounting Standards Board credit impairment rules; and
  • A congratulations to the credit unions everywhere that helped attract 800,000 new members in the first quarter of 2013.
Each Friday, The Cheney Report delivers Cheney's insights on three to four key events and policy developments affecting credit unions into the e-mail inboxes of credit union CEOs. The report also provides a valuable window into CUNA's actions on behalf of member credit unions and reinforces the value of CUNA membership.

To sign up for The Cheney Report, click the resource link below and use the "subscribe" tab on the right of the page.

Past issues of The Cheney Report are also archived on

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