WASHINGTON (11/14/13)--Qualified mortgages, exemption authority and secondary mortgage markets were among the items discussed when representatives from the Pennsylvania Credit Union Association (PCUA) and local credit unions met members of the U.S. Congress for a roundtable on Consumer Financial Protection Bureau mortgage regulations.
The Pittsburgh roundtable was hosted by House Financial Services financial institutions and consumer credit subcommittee Chairman Shelly Moore Capito (R-W.Va.) and Rep. Keith Rothfus (R-Pa.). WEST-AIRCOMM FCU, Beaver, Pa., CEO Ray Brunner, Clearview FCU, Moon Township, Pa., Associate Vice President of Real Estate Lending Sharon Sweeney, PCUA Vice President of Governmental Affairs Christina Mihalik and PCUA Senior Account Executive Monika Edlis shared credit union concerns during the roundtable. The meeting was also attended by representatives from community banks, mortgage banks, title insurance companies, and community development corporations.
Several concerns regarding the CFPB's qualified mortgage rule were addressed. Comments on the QM rule included:
The total debt to total monthly income ratio of 43% should be expanded;
The 3% limitation on points and fees for a qualified mortgage loan may be problematic for some credit unions; and
Credit unions should not have to face retribution from examiners when writing non-qualified mortgage loans.
Greater use of the CFPBs exemption authority was also encouraged by the credit union roundtable participants.
The credit union advocates also noted the need for a secondary market to accept non-QM loans, and urged congressional support for the Consumer Mortgage Choice Act. That bill would address some credit union concerns regarding point and fee definitions in the Consumer Financial Protection Bureau's amended final "Ability to Repay" rule.
The CFPB should delay the effective dates of the upcoming mortgage rules, and protect credit unions and other mortgage originators from litigation, they said. The Credit Union National Association has called on the CFPB and Congress to delay until September 2014 possible sanctions and legal liability under QM and other mortgage rules. CUNA has also sought a one-year mortgage regulation implementation delay.