Regulatory AlertsInteragency Statement on Supervisory Approach for Qualified and Non-Qualified Mortgage Loans
The Federal Reserve and other federal financial institutions regulatory agencies issued this statement to clarify safety-and-soundness expectations and Community Reinvestment Act considerations for institutions engaged in residential mortgage lending. The guidance confirms that institutions may originate both qualified and non-qualified mortgage loans based on their business strategy and risk appetite without facing safety-and-soundness criticism solely due to loan status. Additionally, the agencies state that originating only qualified mortgages will not adversely affect an institution's CRA evaluations, provided no other factors are present.
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