The CFPB has been hitting the conference circuit hard in recent months to get mortgage industry participants up to speed on rules that take effect in January 2014. Bureau Director Richard Cordray told conference attendees that qualified mortgages (QM), as defined under the CFPB’s ability-to-repay (ATR)/QM, do not represent the totality of good loans. Lenders who have upheld sound underwriting standards “have little to fear” from the rule, he said.
“Nothing about their traditional lending model has changed, and they should continue to offer the same kinds of mortgages to borrowers whom they evaluate as posing reasonable credit risk — whether or not they meet the criteria to be classified as [QMs],” Cordray said.
Cordray reiterated that, come next year, the CFPB will be sensitive to firms that have been “squarely focused on making good-faith efforts to come into substantial compliance” with the bureau mortgage rules.
Industry participants also had the opportunity to meet with CFPB leaders during sessions and one-on-one to discuss specific implementation issues. Notably, lenders, consumer advocates and the CFPB shared divergent views on the ATR/QM rule’s ultimate impact.
Noticeably absent from the CFPB’s public narrative was any discussion of a rule that would merge certain mortgage disclosures required under the Truth and Lending Act and the Real Estate Settlement Procedures Act. A final rule was due in October, but many industry watchers now believe it may delayed, perhaps until December.
Thought leaders and policymakers weighed in on numerous additional issues ranging from housing finance reform to the overall forecast for the mortgage market. Watch doddfrankupdate.com in the coming days for more convention coverage, and stay tuned during the month of November for in-depth reports on specific implementation issues and the broader trends driving the mortgage market.