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Tuesday, June 26, 2012

Action Alert: Contacts Needed on QM Safe Harbor

House Financial Services Financial Institutions Subcommittee Chairman Shelley Moore Capito (R-WV) and Rep. Brad Sherman (D-CA) are circulating a Dear Colleague letter, seeking additional signatories for a letter asking the CFPB to adopt a “safe harbor” for its pending Qualified Mortgage (QM) rule.

ABA also has been urging the CFPB to adopt such a safe harbor, explaining in an April joint letter that a safe harbor “is the only means of ensuring that the largest number of borrowers possible will enjoy the safest and most affordable options for sustainable credit available through the QM.”

An ABA backgrounder on the issue is available here.

We are urging state executives and bankers to contact their House Members to ask them to sign-on to the Capito-Sherman letter to the CFPB. We need as many Members of Congress as possible to be signatories on the letter so that we can be sure the CFPB is aware of the broad base of support for including a safe harbor in the QM.

You can contact your House Members through the U.S. Capitol switchboard at 202-224-3121, or go to the www.house.gov and click on “Find Your Representative.”

When speaking to your Representative (or their staff), you should:
  1. Tell them that without a safe harbor, the “ability to repay standard” will make it harder or impossible for many people to get mortgage loans, further damaging our housing economy. 
  2. Urge them to sign on to the Capito-Sherman letter to the CFPB. 
  3. Tell them that if CFPB fails in getting this right, Congress will have to act to prevent dramatic harm to the mortgage markets.
Read the Dear Colleagues letter.

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