Summaries outline reg alerts on ECOA, QM

(June 11, 2021) NASCUS posted two other summaries this week, on NCUA-issued “regulatory alerts” over the last two weeks on the CFPB’s Regulation B (Equal Credit Opportunity Act, ECOA), and the bureau’s delay of the compliance date with the new “qualified mortgage” (QM) rule.

Both summaries are available to members only.

The ECOA alert advises credit unions that they should ensure policies, procedures, and training materials promote compliance with federal equal credit opportunity laws, and Regulation B administered by the CFPB, in line with a 2020 U.S. Supreme Court ruling. The alert (21-RA-07) notes that a March 16 interpretive ruling published by CFPB clarified the prohibition against sex discrimination in the ECOA.

The alert also notes that the rule is consistent with the 2020 high court ruling in Bostock v. Clayton County, Ga. That ruling held that the prohibition against sex discrimination in Title VII of the Civil Rights Act of 1964 encompasses sexual orientation discrimination and gender identity discrimination.

The second alert focuses on action taken by CFPB in late April, which moved compliance with the QM rule to Oct. 1, 2022 from July 1 of this year. The bureau said in April that the delay was made to “help ensure access to responsible, affordable mortgage credit, and preserve flexibility for consumers affected by the COVID-19 pandemic and its economic effects.”

The final rule making the change was titled “April 2021 Amendments to the ATR/QM Rule” (ATR stands for “ability to repay”).

In its alert, NCUA notes the two categories that the compliance date delay affects: General QMs and temporary GSE QMs (referring to QMs issued by government-sponsored enterprises Fannie Mae and Freddie Mac).

NASCUS Summary: 21-RA-07 Equal Credit Opportunity Act (Regulation B) (members only)

NASCUS Summary: 21-RA-06 CFPB Delays Mandatory Compliance Date of General Qualified Mortgage (QM) Final Rule Under Truth in Lending Act (members only)