WASHINGTON—BCFP Acting Director Mick Mulvaney earlier this week indicated that the Bureau plans to review its qualified mortgage rule as part of efforts to "look at unduly and overly burdensome regulations."
“If you think you can have a one-size-fits-all rule for every single mortgage, you don't understand the mortgage business,” said Mulvaney. He further pointed out differences between how some mortgage providers, such as Quicken Loans, can make a loan to an applicant versus how a local credit union can provide a loan to longtime member.
Mulvaney made the comments at the National Association of Realtors conference.
In 2017, the BCFP announced it would be assessing the effectiveness of its qualified mortgage rule and would issue a final report on its findings by Jan. 10, 2019. NAFCU has told the BCFP about the growing cost of mortgage lending due to the CFPB's rule and the negative effect it has had on credit unions' origination volumes, profitability and member satisfaction.
The Economic Growth, Regulatory Relief and Consumer Protection Act (S 2155), which is expected to be voted on in the House next week, includes a provision to provide a safe harbor from certain qualified mortgage requirements for residential mortgage loans held on a mortgage originator's portfolio. These provisions were also included in another bill that passed out of the House in March, NAFCU noted.
NAFCU said it also continues to advocate for Senate action on the Mortgage Choice Act (HR 1153), which passed out of the House in February. The legislation would adjust Truth in Lending Act (TILA) mortgage rules by exempting from the qualified mortgage cap on points and fees any affiliated title charges and escrow charges for taxes and insurance.