Washington, DC – Today, in reaction to the Consumer Financial Protection Bureau’s (CFPB) release of the Qualified Mortgage (QM) rule and the inclusion of a legal “safe harbor” for certain qualified mortgages, NCRC President and CEO John Taylor made the following statement:
“The Consumer Financial Protection Bureau, in creating a legal safe harbor for certain qualified mortgages, has given the industry a protection that does nothing to help consumers. It is an unneeded and undeserved privilege for the lending industry, which caused grave financial harm to millions of Americans during the financial crisis.”
“What the safe harbor does is abridge consumers’ legal rights in favor of lenders’ interests. No matter how well crafted, QM cannot be foolproof in that it cannot anticipate the future. New products can emerge, and new industry strategies can take hold. Therefore, consumers should have full legal recourse when they are abused in ways that the QM rule does not anticipate.”
“Regardless, this rule removes the excuse lenders throughout the country have used as to why they have been constricting access to mortgage credit. With the rule in place, we look forward to the issuance of a lot more mortgage products to creditworthy borrowers, which will help stimulate the housing market and economic recovery.”
NCRC has previously called for a rebuttable presumption for qualified mortgages.
The National Community Reinvestment Coalition is an association of more than 600 community-based organizations that promote access to basic banking services, including credit and savings, to create and sustain affordable housing, job development and vibrant communities for America’s working families. To find out more, visit http://ncrcdev.local