WASHINGTON—Legislation has been introduced that would ensure residential mortgage loans held in portfolio by originators, such as credit unions, automatically attain the qualified mortgage safe harbor under the Consumer Financial Protection Bureau’s (CFPB) rules.
The bill, HR 2673, was submitted by Rep. Andy Barr (R-KY). Barr was also the chief sponsor of a similar bill in the previous Congress, Portfolio Lending and Mortgage Access Act.”
The legislation has the backing of the credit union trade associations.
“NAFCU has long urged lawmakers that credit unions and other financial institutions should be given a safe harbor if they assume the risks associated with making a mortgage loan to consumers when necessary and appropriate,” said Brad Thaler, NAFCU’s VP of Legislative Affairs. “We hail Rep. Barr, the bill’s cosponsors and their staffs for their continued support on this measure that would help provide much needed regulatory relief for credit unions.”