Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
Reg alert updates CU ATR/QM responsibilities, protections
ALEXANDRIA, Va. (3/17/14)--The National Credit Union Administration has reminded credit unions of the compliance responsibilities created by new Ability-to-Repay/Qualified Mortgage (ATR/QM) rules, and the protections offered to certain credit unions, in a new regulatory alert (14-RA-09).

The Consumer Financial Protection Bureau's ATR/QM rules became effective on Jan. 10, and apply to all federally insured credit unions. The rules require credit unions to assess a member's ability to repay for virtually all closed-end residential mortgage loans secured by a member's dwelling. Loans with terms that do not exactly match certain CFPB QM requirements, such as 40-year loans, or loans with points and fees exceeding the thresholds established by the rule, will not be purchased by government-sponsored enterprises.

The NCUA alert includes details on:
  • Which loans are covered by the rule;
  • Basic ability-to-repay requirements;
  • Eight factors credit unions must consider when making an ATR determination;
  • 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.
The agency said this latest regulatory alert supersedes and replaces  14-RA-01, released in January. The new release clarifies the points and fees limit for each loan amount threshold and types of charges included in ATR/QM calculations, the agency said. 14-RA-09 also references updated guidance for implementing the requirements of the rule, the NCUA added.

The letter also includes an updated ATR/QM small entity compliance guide, a general comparison chart of ATR and QM requirements, and a small creditor QM flowchart.

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

NCUA Reg Alert 12-RA-09
RSS





print
News Now LiveWire
Sony hack linked to N. Korea, says U.S.intelligence via @nytimes http://t.co/fE3PtMgEFz
9 hours ago
.@CUNAMutualGroup Klewin shares final thoughts, forecast on lending regulations with @cumagazine before retiring http://t.co/v78QY3QwqB
12 hours ago
Current @CUNA COO @JillTomalin promoted to deputy chief of staff
13 hours ago
#CU Effect:@ChartwayFCU 'branch of the future' 2 benefit members, staff. 2nd installment of new News Now series here:http://t.co/ImBY4nupEj
14 hours ago
U.K. regulators have given formal authorization for the @c_of_e to form a #creditunion.
14 hours ago