The state bankers associations urged CFPB Director Richard Cordray to delay the mortgage rules taking effect in January for six to twelve months.
“The impending implementation ... threatens to destabilize the mortgage finance system in our states, limiting credit to many otherwise qualified borrowers,” they said. “We are not seeking to change the QM rule, but we do request a delay so banks can comply without disrupting lending to our customers.”
The associations thanked Cordray for his assurances that the CFPB will make allowances for banks making good-faith compliance attempts, but they noted that banks need greater certainty.
“Many banks will not move forward with lending until they are certain that they can do so in full compliance and within the bounds of acceptable risk,” they said. “To do otherwise is counter to bank safety and soundness and exposes banks and their employees to liability not just from regulators, but from private rights of action and state attorneys general.”
Read the letter.