CFPB May Revisit Small Bank QM Exemptions

January 8, 2014
American Banker  
mortgage lending news

The Consumer Financial Protection Bureau may look at widening exemptions for small lenders from its qualified mortgage rule taking effect on Jan. 10, said agency head Richard Cordray. During a discussion hosted by the National Association of Realtors on Jan. 7, Cordray said the CFPB tried to design the exemption to avoid burdening smaller lenders but was willing to tweak the requirements once the agency determines the rule's impact.

"We will be sensitive to considering whether we got the [exemption] line right, whether we should put it in a different place," he explained. "Let's see how they're working. ... And if we see something that's dramatically out of balance with what we expect in this market, we want to hear it from the Realtors, we want to hear it from the community bankers, the credit unions, anybody who has line of sight on this market in order to think about what that means."

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