National Association of Federal Credit Unions President and CEO Fred Becker urged CFPB Director Richard Cordray to continue to reevaluate the ability-to-repay/qualified mortgage rule’s 500-mortgage exemption threshold.
Under the proposed rule, credit unions with assets of $2 billion or less that originate less than 500 mortgages a year are exempt from the rule.
Becker said the organization’s research showed that 879 credit unions across the U.S. have assets of less than $2 billion and issue at least 100 mortgages every year. Of the 879 institutions, 244 extend 500 or more mortgages every year, and of the 244 institutions, 198 surpassed the 500 threshold in the past seven years.
“We believe that as consumers continue to turn to credit unions for their mortgage lending, many more will lose their exemption unless the CFPB increases the threshold,” Becker said in a letter to Cordray, urging him to raise the threshold to 1,000. “Consequently, the relief that the CFPB seeks to provide to small creditors will erode, and fewer small credit unions will likely extend additional mortgages and meet their members’ needs.”