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CFPB Mortgage Rule Change Will Help Community Banks

Tuesday, September 22, 2015

Yesterday, the Consumer Financial Protection Bureau finalized changes to its Qualified Mortgage (QM) rule. The changes, which raise the number of loans a small creditor can re-sell and expand the number of banks that can qualify as a "rural bank," are a response to feedback from lenders.

CRL Policy Counsel Yana Miles issued the following statement:

The CFPB's Qualified Mortgage rule changes show a continuing openness to respond to the concerns of small banks and credit unions. These rules make it easier for community lenders to make certain loans. The changes need to be carefully monitored to ensure they contribute to access to responsible loans.

Yesterday's announcement shows that the CFPB is closely following the real world impact of its rules. They are watching how policies impact markets and willing to make reasonable adjustments.

This is not a case in which "more is better." In contrast to some bills in Congress, the rules do not create loopholes that will allow trillion dollar banks to take advantage of exemptions meant for smaller institutions.

Overall, the latest data shows that the mortgage rules are working and that the housing market is continuing to recover.

For more information, or to arrange an interview with a CRL spokesperson on this issue, please contact Andrew High at or 919-313-8533.