Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
NEW: NCUA Reg Alert Covers QM Rule
ALEXANDRIA, Va. (1/2/14, UPDATED: 3:20 P.M. ET)--Credit unions that make closed-end consumer loans secured by a dwelling must comply with the Consumer Financial Protection Bureau's new Ability-to-Repay/Qualified Mortgage (ATR/QM) rule for loan applications received on or after Jan. 10, the National Credit Union Administration reminds in its first Regulatory Alert on 2014.

The rule requires credit unions to assess a member's ability to repay for virtually all closed-end residential mortgage loans secured by the member's dwelling and provides your credit union with certain protections from legal liability for compliance with the rule, the agency said in a release.

The NCUA alert includes details on:
  • Which loans are covered by the rule;
  • Basic ability-to-repay requirements;
  • How QMs provide a safe harbor;
  • The different types of QMs;
  • Caps on QM points and fees;
  • How QMs protect against liability;
  • What makes a QM loan higher priced;
  • When prepayment penalties are allowed for QM loans; and
  • What other guidance has been made available.
A supervisory letter with compliance guidance for credit unions and instructions for agency examiners will be released soon, the agency added.

NewsNow will feature more on this release in tomorrow's issue.
Other Resources

NCUA Release
RSS print
News Now LiveWire
NCUA confirmed earlier indications that there would be no National Credit Union Share Insurance Fund premium for 2014.
8 hours ago
.@NJCUL supported prized-linked savings legislation introduced in New Jersey state Senate.
8 hours ago
#creditunions emphasize co-op principles during National Co-op Month #NewsNow http://t.co/zEb9UFot1N
15 hours ago
Servicemember's spouse drives away with Bank on More's SUV thanks to #missouri #creditunions http://t.co/WvTrKxh0sV
16 hours ago
From @FHFA this a.m.: U.S. house prices up 0.5% in Aug. on seasonally adjusted basis from previous month. More here: http://t.co/1yVDOPggeX
17 hours ago