WASHINGTON–The Consumer Financial Protection Bureau has finalized its proposed rule to increase the total-loan threshold from 500 to 2,000 for its “small creditor” exemption requirements in the ability-to-repay/qualified mortgage rules. But NAFCU said it remains concerned.
“While NAFCU welcomes the CFPB’s move to increase the small creditor origination threshold to 2,000 as much-needed regulatory relief for credit unions, we have ongoing concerns about the bureau’s addition of affiliate assets towards the $2-billion threshold,” said SVP-Government Affairs and General Counsel Carrie Hunt. “We are carefully analyzing the impact of this affiliate addition to the asset calculation.”
The CFPB said the rule would facilitate responsible lending by small creditors, especially in rural and underserved areas. The rule will also exclude originated loans held in portfolio by the creditor and its affiliates from the threshold limit.
In addition to changing the loan threshold, the rule will: factor mortgage affiliates into the asset threshold of $2 billion; expand the definition of “rural” areas and provide grace periods for small creditor and rural or underserved creditor status; create a one-year qualifying period for rural or underserved creditor status; and provide additional implementation time for small creditors.
NAFCU said its staff are studying the rule for its impact on credit unions and will continue to monitor developments from the CFPB.