The CFPB and the NCUA are emphasizing that credit unions can still originate non-QM loans to buyers that pose risk under the CFPB's new Ability-to-Repay/Qualified Mortgages rule.
The ATR/QM rule, which took effect on Jan. 10, requires federally insured credit unions to make a reasonable, good faith determination that a member will be able to repay a covered mortgage loan before a transaction occurs.
The rule "applies to loans made to members secured by residential structures that contain one to four units, including an individual condominium unit, cooperative unit, mobile home and trailer if it is used as a residence," the NCUA said in a regulatory alert on Jan. 2.
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