Academic journal article ABA Banking Journal

Cordray Responds to QM Questions

Academic journal article ABA Banking Journal

Cordray Responds to QM Questions

Article excerpt

ABA continues to urge bankers to ask Congress to support an extension from the January 2014 effective date for most of the new mortgage regulations, including those for Qualified Mortgages, released back in January by the Consumer Financial Protection Bureau. CFPB Director Richard Cordray, however, who spoke to the bankers attending ABA's Annual Convention last month, left little doubt that, so far as the Bureau is concerned, there will be no extension.

He pointed out to attendees that in the absence of the rules, the industry would have come under the Dodd-Frank Act's revised mortgage regime a year earlier.

In a Q&A session with ABA President Frank Keating immediately following his speech, Cordray expressed surprise that some community bankers still don't know that their mortgage lending comes under the bureau's rules. While CFPB directly examines only larger institutions under typical circumstances, it can examine any bank, and all insured banks fall under its mortgage regulations, although there is a small-creditor category of QM loans for community banks.

To make things completely clear, Cordray said CFPB put together a single-sheet guide to the qualified-mortgage concept. (To view the guide, go to http://tinyurl.com/QMguide-aba)

Cordray noted that, having gone through the process of producing all the new rules quickly at the bureau, he understood the industry's anxiety about being ready on time. …

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