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Friday, April 19, 2013

CFPB Promises ‘Continued Guidance’ on QM

Consumer Financial Protection Bureau Deputy Director Steve Antonakes said that the bureau intends to furnish “continued guidance” for bankers to comply with newly issued Qualified Mortgage (QM) rules while avoiding violations of fair lending laws.

For banks that sell insurance, the QM rule impacts affiliate sales of insurance products to mortgage customers. In addition, CFPB's mortgage servicing rules affect lender-placed insurance and the timing of notices issued to consumers.

“If we follow the qualified mortgage rule strictly, then we may be accused of some disparate impact because we may not be able to make as many loans to low- and moderate-income buyers,” one ABA member told Antonakes during a “Meet the Regulator” session at yesterday’s ABA Summit.

Antonakes responded that he would “engage in a dialogue” with ABA and institutions on the issue in the days ahead.

Learn more about the QM Rule from the CFPB.