Rep. Patrick McHenry, (R-N.C.) rapped Consumer Financial Protection Bureau (CFPB) Director Richard Cordray for suggesting credit unions make mortgages to borrowers they see as a reasonable credit risk even though they fall outside the guidelines of the qualified mortgage (QM) rule. Rep. McHenry says that is opening the door for potential litigation against lenders. As nationalmortgagenews tells MHProNews, the QM rule, which is scheduled to take effect in Jan., 2014, protects lenders from litigation in cases of default, and also protects Fannie Mae, Freddie Mac and FHA loans. But McHenry, as Chairman of the House Financial Services Subcommittee on Oversight says: “If you truly desire that creditors venture outside the walls of the QM rule, I strongly recommend the CFPB work to remove the repercussions of legal action, rather than simply urge lenders to try their luck.”
