New Mortgage Rules Take Effect Jan. 10; CFPB’s Cordray Thanks Credit Unions for ‘Hard Work’

On the eve of the implementation of new mortgage rules adopted by the Consumer Financial Protection Bureau, CFPB Director Richard Cordray thanked credit unions this week for taking “another critical step in the ongoing recovery of the housing market.”

“We recognize that the challenges posed by these changes are not small,” Cordray said in a letter to credit union leagues. “I want to thank you for all your hard work in preparing to implement these rules,” which take effect on Friday, Jan. 10.

Cordray said the CFPB had spent “considerable time over the past year developing tools and providing guidance” to help credit unions make the changes necessary to ensure that their mortgage processes and procedures are in compliance with the new Ability-to-Repay/Qualified Mortgage rules, including a Web page dedicated to implementation that contains plain-language guides and videos for each mortgage rule.

In particular, Cordray said, the CFPB wants to make sure that credit unions understand the definition of a qualified mortgage and how the ATR/QM rules affect small creditors. To that end, his letter highlighted some of the key provisions of the rules and pointed credit unions to the bureau’s website for more information.

Cordray also said that examination procedures for the new rules have been updated and approved by the Federal Financial Institutions Examination Council (FFIEC) and posted on the FFIEC’s website. On Monday, the National Credit Union Administration said its field staff “will take into account a credit union’s good-faith efforts to comply” with the new regulations as they conduct their early-stage examinations, “placing particular emphasis on the safety and soundness implications of mortgage lending under this new paradigm.”

The NCUA’s supervisory letter to credit unions is available online. You’ll find Cordray’s letter to credit unions here.


Questions? Contact Gary Stein: 503.350.2216,

Posted in Compliance News.