Compliance Blog

Written by Brandy Bruyere, Regulatory Compliance Counsel

Yesterday, NCUA released a Regulatory Alert containing an overview of the CFPB’s Ability-to-Repay/Qualified Mortgage (ATR/QM) rule. This rule becomes effective next week and will apply to loan applications received on or after January 10, 2014. Drawing upon several resources including CFPB’s small entity compliance guide and mortgage origination comparison chart, the Regulatory Alert is a helpful summary that simplifies some complex issues. Some of the key topics include:

• The scope of the rule, meaning which loans are covered and which are exempt;
• The eight ATR underwriting factors;
• Explanation of the verification requirements for making its ATR determinations;
• Overview of the record retention requirements;
• Discussion of QMs including the distinction between non-higher priced QMs which receive safe harbor protection and higher-priced QMs which are presumed compliant;
• The four type of QMs (general, temporary, small creditor, and balloon-payment) which NAFCU outlined in this month’s Compliance Monitor (available with login);
• A chart of caps on QM points and fees limits;

The Regulatory Alert notes that NCUA plans to release a Supervisory Letter to examiners prior to the January 10, 2014 deadline. The Alert also includes links to other resources such as the CFPB’s small entity compliance guide, a mortgage origination comparison chart, and a small creditor QM flowchart. Finally, keep in mind that NAFCU has a variety of helpful compliance resources for the upcoming mortgage rules deadlines.

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TILA-RESPA Final Rule. The CFPB’s TILA-RESPA final rule on integrated mortgage disclosures has been published in the Federal Register. We previously blogged about this rule on November 22, 2013. NAFCU’s Regulatory Affairs team has prepared a Final Regulation (13-EF-31) summarizing key aspects of this rule for NAFCU members, available here (with login).