The American Bankers Association is generally pleased with the final touches the Consumer Financial Protection Bureau made to the qualified mortgage rule, but it is disappointed the bureau didn’t postpone the Jan. 10, 2014 effective date.
“We still think there is going to be a lot of difficulty in complying with the QM rule. We think lenders will comply in part by becoming more conservative because there is so much to do in such a short time,” ABA senior vice president Bob Davis told NMN.
He noted that vendors are telling some bankers that they will not have new systems ready until Thanksgiving.
“If that is the case, it is not enough time to train staff. So lending will get even more conservative,” Davis said.
The CFPB issued the final QM rule in January 2013 and it subsequently issued a proposal for comment to improve and amend the QM rule, which includes the ability-to-repay underwriting standards.
The consumer bureau finalized and issued those
“We are still asking Congress to look at legislation and CFPB to look at their authority to extend the effective date past January 2014,” the ABA executive said.
