Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
CUs Receive QM, non-QM Guidance from NCUA
ALEXANDRIA, Va. (1/7/14)--National Credit Union Administration field staff "will take into account a credit union's good-faith efforts to comply" with new qualified mortgage regulations as they conduct their early-stage examinations, the agency said in a supervisory letter to credit unions (14-CU-01) released Monday.

"As CUNA has been advocating for some time, NCUA has now put into writing that it will take into account, during examinations, credit unions' good faith efforts to comply with the new mortgage rules," Credit Union National Association Deputy General Counsel Mary Dunn said.

"Coupled with the guidance issued last week CUNA also sought--in which NCUA made it clear that it would not expect credit unions to make only 'qualified mortgage' loans--credit unions can structure mortgage loans to meet members' needs and do not have to fear they will be written up for noncompliance with the new mortgage rules as they are working to meet their compliance responsibilities," she added.

The agency letter said NCUA field staff will place particular emphasis on the safety and soundness implications of mortgage lending. Whether a credit union originates Qualified or non-Qualified Mortgages, "examiners will be evaluating credit risk, liquidity risk, and concentration risk," the agency added.

NCUA Chairman Debbie Matz in the letter emphasized that non-QM lending "can be an effective member service if conducted safely and soundly." The agency, she said, "will not subject a mortgage to safety-and-soundness criticism solely because of the loan's status as a QM or non-QM.

However, "credit unions choosing to make non-QMs will need to take into account the potential new market and legal risks," Matz added.

The new QM rule becomes effective on Jan. 10, and will apply to all federally insured credit unions.

For the full letter, use the resource link.
Other Resources

NCUA Letter 14-CU-01
RSS print
News Now LiveWire
Terri Maloney, CEO, #CatholicUnitedFinancialCU, part of Minn. elder abuse guidance presser. See #NewsNow http://t.co/ywyANIY69w
9 minutes ago
Another state will probe the Experian data breach; learn more in tomorrow's edition of #NewsNow #CUNA #creditunions
17 hours ago
Canada's @Vancity to support phase 3 of @WOCCU's Build the Brand http://t.co/6IMSvA8LMZ
17 hours ago
Yesterday, #creditunions across the country encouraged members to #gogreen on #EarthDay http://t.co/boBamaLJoh #greenliving
20 hours ago
As ticket prices for sporting events soar, #creditunions are pitching in to drive down costs for members http://t.co/EgrrtkVlgt
22 hours ago