WASHINGTON (6/14/13)--Jerry Reed, chief lending officer of Alaska USA FCU, Anchorage, will represent credit unions next week when he testifies on behalf of the Credit Union National Association at a hearing entitled, "Examining How the Dodd-Frank Act Hampers Home Ownership."
The 10 a.m. (ET) hearing next Tuesday continues a study by the House Financial Services subcommittee on financial institutions and consumer credit of the impact on the housing market of the Qualified Mortgage rule recently issued by the Consumer Financial Protection Bureau under Dodd-Frank.
The QM rule, in part, requires mortgage lenders to determine at the time a loan is made that the borrower has a reasonable ability to repay it.
If a lender fails to determine that the borrower can repay the loan, the lender is subject to statutory damages and potential class action liability under the law. In addition, the Dodd-Frank Act permits borrowers to raise the lender's failure to satisfy the ability-to-repay requirement as a defense in foreclosure proceedings.
The subcommittee intends to examine how these and other provisions affect the housing market.
Also scheduled to testify are:
- Charles A. Vice, Commissioner, Kentucky Department of Financial Institutions, on behalf of the Conference of State Bank Supervisors;
- James C. Gardill, chairman of the board, WesBanco, Inc., on behalf of the American Bankers Association;
- Debra W. Still, CMB, chairman, Mortgage Bankers Association; and
- Gary Thomas, president, National Association of Realtors.