CBA Joins ABA, Representatives in Call for QM Delay
One hundred eighteen U.S. representatives signed a bipartisan letter last week urging the Consumer Financial Protection Bureau (CFPB) to delay the mortgage rules — especially the Ability-to-Repay/Qualified Mortgage rule – taking effect in January. The rules present financial institutions with more than 4,000 pages of new regulations, a task that is especially difficult for community financial institutions that may only have one or two compliance officers, the representatives said.
In addition, the CBA jointly with the American Bankers Association sent a letter to CFPB Director Richard Cordray with the same request. CBA noted concerns about vendor readiness for the rules, which combined with the compliance challenges could mean that many banks will not move forward with lending until they are certain that they can do so in full compliance and within the bounds of acceptable risk.
Click here to read the letter sent by the U.S. representatives.