WASHINGTON—NAFCU and CUNA have joined with 36 organizations representing the financial services, real estate finance, housing, consumer affairs, and civil rights sectors in sending a letter to six agencies asking for a delay in their current review of certain provisions of the Credit Risk Retention Rule.
The letter was sent to the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Securities and Exchange Commission, the Federal Housing Finance Agency, and the Department of Housing and Urban Development.
The coalition calls to delay the agencies’ review until after the CFPB’s qualified mortgage (QM) rulemaking is complete.
The CFPB initiated an advanced notice of proposed rulemaking (ANPR) to address the upcoming expiration of the category of loans that obtain QM status due to their eligibility for purchase or guarantee by the GSE Patch. The CFPB’s comment period for the ANPR closed in September 2019, and the agency is expected to issue a notice of proposed rulemaking on QM soon, NAFCU noted.
Coalition Offers Suggestion
The coalition said the definition of qualified residential mortgage (QRM) can be “no broader” than the definition of QM, and that “QM and QRM are linked by law.” Therefore, the coalition suggests that the agencies cannot accurately evaluate and seek comment on the impacts of QM-QRM differences without knowledge of the CFPB’s final determination on the definition of QM or a time period of experience under new QM configurations.
“Whether the definitions of QRM and QM should continue to be the same or whether changes need to be made, however, are questions that cannot be answered at this time,” the coalition concluded.
In addition to the six agencies, the NCUA was copied on the letter as well.
The letter was sent to the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Securities and Exchange Commission, the Federal Housing Finance Agency, and the Department of Housing and Urban Development.
The coalition calls to delay the agencies’ review until after the CFPB’s qualified mortgage (QM) rulemaking is complete.
The CFPB initiated an advanced notice of proposed rulemaking (ANPR) to address the upcoming expiration of the category of loans that obtain QM status due to their eligibility for purchase or guarantee by the GSE Patch. The CFPB’s comment period for the ANPR closed in September 2019, and the agency is expected to issue a notice of proposed rulemaking on QM soon, NAFCU noted.
Coalition Offers Suggestion
The coalition said the definition of qualified residential mortgage (QRM) can be “no broader” than the definition of QM, and that “QM and QRM are linked by law.” Therefore, the coalition suggests that the agencies cannot accurately evaluate and seek comment on the impacts of QM-QRM differences without knowledge of the CFPB’s final determination on the definition of QM or a time period of experience under new QM configurations.
“Whether the definitions of QRM and QM should continue to be the same or whether changes need to be made, however, are questions that cannot be answered at this time,” the coalition concluded.
In addition to the six agencies, the NCUA was copied on the letter as well.