WASHINGTON (10/29/13)--The Consumer Financial Protection Bureau is working to increase awareness of two major topics: Qualified Mortgage (QM) standards that have created many questions for credit unions and others, and new remittance regulations, which became effective on Monday.
Many credit unions may be asking "so what exactly is a 'qualified mortgage'" as the January implementation date for new mortgage regulations approaches. A new single-page bureau release details QM basics, mandatory product feature requirements for all QMs, and the three main categories of QMs.
The CFPB release also notes that even loans that are not QMs can still be appropriate loans. "You can originate any mortgage (whether or not it is a QM) as long as you make a reasonable, good-faith determination that the consumer is able to repay the loan based on common underwriting factors. You can continue to rely on your sound, tested underwriting guidelines that you have used in the past to make loans that have generally performed well, as long as you document the information you consider," the CFPB release said.
Pictured above is one of the many resources the CFPB has developed to inform consumers on the new remittance rule. This flier is in Chinese.
On Monday, the CFPB also released new fact sheets, brochures, fliers and posters to remind consumers that they "have new rights" if they send money to family or others outside the United States. Most of the resources are available in English, Spanish, Chinese, French-Creole and Tagalog.
New remittance questions and answers are also being added to the Ask CFPB and consumerfinance.gov/es Spanish-language CFPB sites. The bureau also plans to advertise the new remittance protections as the holiday season approaches.
For more, use the resource links.