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

The CFPB has released a bulletin regarding avoiding discrimination against those receiving Social Security disability income as part of the lending process. Does extra guidance mean this will soon be an increased area of scrutiny? It may be time to brush up on what the CFPB expects of lenders. [11/19/14]

While the government is seeking to make lenders more comfortable by expanding their offerings to boost homeownership, Bank of America's CEO says his bank, a top five mortgage lender in the nation, has little incentive to open up low down-payment options. Consumers who can't come up with the down payment should consider renting instead of buying. [11/13/14]

The CFPB recently released the 2015 Rural or Underserved Counties List. This list is relevant for understanding requirements of escrow, ability to repay, high-priced mortgage loans, and other technical regulations. [10/28/14]

Tweaks to mortgage rules include hammering out the definition of nonprofit small servicers, the extension of the Ability-to-Repay exemptions to include certain nonprofit groups, and cases in which refunds to a consumer for excess points and fees may occur. [10/23/14]

Six federal agencies approved a final rule that defines "qualified residential mortgage" and exempts their securitization from the risk retention requirement. [10/23/14]

Despite the greater alignment of qualified mortgage rules, there is still an environment of heavy government lawsuits, which conflicts with the government's message to mortgage lenders that they need to lend more. [10/22/14]

Federal regulators have approved a final rule that will require investment banks to hold at least 5% of a mortgage loan’s risk on their books when securitizing loans unless the loan meets the definition of a qualified residential mortgage (QRM). In accordance with recommendations from the credit union industry and others, the definition of a QRM has been more closely aligned with the definition of a qualified mortgage (QM). The regulators further agreed to review the QRM standard in four years. [10/22/14]

Federal Housing Finance Agency Mel Watt announced that mortgages lenders will soon be provided with more certainty regarding covering losses on loans sold to Fannie Mae and Freddie Mac. According to Mary Dunn, Deputy General Counsel at CUNA, the changes could mitigate some concerns that credit unions have about the need for flexibility in their mortgage lending practices. [10/22/14]

FDIC adopts the interagency qualified residential mortgage rule changes that brings it in alignment with the CFPB's qualified mortgage rule, which suits industry groups that had lobbied for alignment just fine. [10/22/14]

Federal Housing Finance Administration's chief tells bankers the agency is working to expand availability for mortgage credit in an effort to give the housing market a lift and is looking for bankers to do their part "to fulfill both sides of our shared responsibility." [10/21/14]