The Point: Dec. 18, 2013


Agencies issue statement on supervisory approach for QM, non-QM loans

NCUA and three other federal regulators recently issued a joint statement to help clarify safety-and-soundness expectations and Community Reinvestment Act (CRA) considerations related to qualified mortgage (QM) and non-QM loans. The statement is intended to guide institutions as they assess the implementation of the CFPB’s Ability-to-Repay and Qualified Mortgage Standards Rule, which takes effect Jan. 10, 2014.

According to the statement:

  • The agencies will not subject a mortgage loan to safety-and-soundness criticism solely based on whether it fits the CFPB’s QM definition.
  • Institutions are expected to underwrite residential mortgage loans in a prudent fashion and address key risk areas, including: loan terms; borrower qualification standards; loan-to-value limits; documentation requirements; and portfolio- and risk-management practices.
  • CRA evaluations will not be adversely affected for institutions choosing to originate only QM loans.

Former Association chairman, longtime CU leader John Prumo to retire

After nearly 35 years of leadership in the credit union movement, GPO FCU President/CEO John Prumo will be retiring Dec. 31. Prumo has been an active member of both the state and national credit union communities throughout his tenure.

In addition to leading GPO FCU, Prumo served on the Credit Union Association of New York board of directors for 25 years and was twice elected Association chairman. He also served as a board member for CUNA, CUNA Strategic Services and the former Members United Corporate FCU.

In 2012, Prumo was inducted into the Credit Union House Hall of Leaders. The Hall of Leaders recognizes credit union leaders whose commitment has made a significant impact on the credit union movement and inspired others.

“John has been an exceptional leader in the credit union movement, and we have all benefited from his dedication and service,” said Association President/CEO William J. Mellin. “We at the Association wish him a happy and healthy retirement.”

CUNA launches new legislative webcast series

Earlier this month, CUNA unveiled another tool to help keep credit unionists up to speed on the latest developments in Congress: the Legislative Affairs audio webcast series. The free webcasts can be played at board meetings or used as briefing tools prior to credit union advocacy initiatives.

The first 15-minute webcast is now available on CUNA’s website (member login required). Hosted by CUNA Legislative Affairs SVP Ryan Donovan, the webcast highlights strategies to combat threats to the credit union tax status, as well as:

  • the level of congressional productivity through October 2013;
  • the late 2013 and early 2014 congressional agenda;
  • the outlook for housing finance reform;
  • regulatory relief measures that could help credit unions; and
  • how credit unionists can advocate their priorities as they meet with members of Congress.

The webcasts will be updated on a monthly basis, with the next scheduled as Congress returns from winter recess.

Filene webinar will focus on importance of promoting from within

Credit unionists can learn more about the importance of internal promotions during a free webinar Dec. 20 at 12 p.m. Hosted by Filene Research Institute and consulting firm Michael Neill & Associates, the webinar will explain how promoting from within creates an exceptional work culture and leads to bottom line results. To learn more or register, visit Filene’s website.

The webinar will conclude with an overview of Filene’s internal development and coaching tool, Vertex.

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