WASHINGTON, D.C. – The Community Mortgage Lenders of America (CMLA)
today issued a statement in regard to the extension of the QM Patch by the CFPB.
“We are very happy the CFPB has listened to our position and is planning to extend
the QM Patch,” said Michael Jones, Chair of CMLA. “Our extensive and comprehensive
efforts provided the insight the CFPB needed to understand and realize the importance of
maintaining the QM Patch in light of the changes that are occurring with the Bureau and
the GSEs. The CMLA made sure that independent mortgage bankers and community banks of
all sizes had an opportunity to contribute to this decision.”
Irrespective of
the new solution, the CMLA feels the transition period from today’s GSE Patch to the new
QM structure should be long enough to allow all parties sufficient time to plan for, and
adjust to, new rules and underwriting standards. The transition should be smooth and
transparent. If not, it risks both regulatory and operational uncertainty that might
cause borrowers and homeowners to suffer needlessly.
As part of a broad
Coalition that is today sending a letter to the Director, we remain hopeful that the
CFPB will examine carefully and incorporate the views of community banks, credit unions,
and mortgage bankers, as well as Realtors, the MI industry, and relevant consumer
groups, who favor a ‘modified DTI with compensating factors’ approach to the QM Patch
solution.
“I am extremely proud of our work on this issue for our members and
the industry,” said Ed Wallace, Executive Director of the CMLA. “it was essential that
the extension be in place to ensure midsize and small lenders remain a vital part of
mortgage lending.”
The Community Mortgage Lenders of America is an industry
advocacy group solely focused on the concerns of midsize and small community-based
lenders.
