Three industry groups are urging the Consumer Financial Protection Bureau to extend the implementation period for the QM and other mortgage rules by at least six months.
The bureau issued the ability to repay and qualified mortgage rule in January and gave the lenders 12 months to implement the complex rule.
However, the CFFB is still clarifying parts of the
“Without more time to comply, we are concerned certain lenders may choose to mitigate the resulting risks by reducing or even eliminating their mortgage lending activities,” the trades say in an April 10 letter.
That could be “devastating” for lenders and reduce consumers’ loan options, according to the American Bankers Association, Consumer Bankers Association and Financial Services Roundtable.
To prevent disruption and encourage responsible lending, the CFPB should use its “exemption authority to extend implementation of the mortgage rules” past the January 2014 deadline by another six to 12 months.
The three trade groups emphasize that their members are “diligently working towards meeting the expected compliance dates. However, our members need the CFPB’s assistance,” the joint letter says.
