Links in “Ability to Repay (ATR)/Qualified Mortgage (QM)”

The CFPB's plan to require lenders to verify borrowers are capable of repaying a loan, restrict the frequency that the loans could be extended, and capping finance charges got President Obama's approval as a "common sense" measure that stops companies from "trapping hardworking Americans in a vicious cycle of debt." [3/27/15]

It passed the House in 2013, but never made it to the Senate. Now the Mortgage Choice Act has been reintroduced in the Senate. The act would, among other things, exclude the amount of any loan level payment adjustment payment from the definition of points and fees for qualified mortgages. [2/4/15]

While the proposed changes to the mortgage rules just issued by the CFPB will benefit many credit unions, both NAFCU and CUNA still have concerns that the proposed rule does not go far enough. On the plus side, the small lender exemption limit from ATR/QM requirements could increase from 500 mortgage loan originations per year to 2,000 per year. However, since credit unions didn’t cause the mortgage abuse that led to stricter regulation, the trades continue to argue that all credit unions should be exempt. [1/30/15]

ICBA applauds the CFPB for proposed changes to qualified mortgage rules to allow community banks greater flexibility. The changes include increasing the threshold for the "small creditor" designation from 500 first-lien mortgage loans per year to 2,000. The definition of "rural" was also expanded. ABA chimes in with its support to here. [1/30/15]

In our most recent blog post, AffirmX's Jane Pannier delivers the CFPB's prescription for curing overages to the points and fees limit for qualified mortgages. While not a cure-all, the amendments may help relieve the pain related to undiscovered and unintended overages, maintain a loan’s qualified mortgage status, and avoid regulatory violations. [1/6/15]

QM rules that penalize lenders with affiliated title companies could be tweaked by the new Republican-controlled Congress. It is just one of a number of adjustments Congress is expected to consider this year. [1/6/15]

Five bills that were important to the credit union industry and that passed the House were not brought up for a vote by the Senate before it recessed for the year. Find out why the Reg. D study, Privacy Modernization Act, FHLB membership, private deposit insurance bills, the qualified mortgage calculation bill, and the changes to the rural designation process matter to you. [12/31/14]

Sometimes it feels like the CFPB is just about everywhere. This month's issue of the The NCUA Report contains a special guest report from the CFPB director on "the Bureau's" Ability-to-Repay Rule. [12/11/14]

A solid quarter for the banking industry, with capital hitting a record high, due in large part to banks aggressively reinforcing the support backing their loans. The downside: new regulatory requirements have made it particularly difficult for first-time homebuyers. [11/26/14]

The CFPB's mortgage rules got you confused? The FDIC is here to help with a new video covering the Ability to Repay and Qualified Mortgage Rule with another two videos on the way! [11/20/14]