Links in “Ability to Repay (ATR)/Qualified Mortgage (QM)”
- Do You Know What Your Real Liability Exposure Is under the Ability to Repay Rule?
Much has been written about the technical requirements under the CFPBâs new Ability to Repay rule. However, until now, very little has been written about a financial institutionâs liability exposure for violating the rule. This article provides eye-opening information. [2/27]
- Not Worth It: Lenders Leaving the Non-QM Market
A growing number of lenders are reporting that they are no longer offering non-Qualified Mortgages due to the added costs of compliance and risks of Department of Justice referrals. [2/19]
- Have New QM Rules Doubled the Cost of Loan Origination?
While new qualified mortgage rules may bring stability to loan manufacturing, that stability will come at a cost. [2/18]
- House Hearing on How to Mitigate Side Effects of QM Rules
Here is a recap of this week's House hearing that addressed consequences of Qualified Mortgage rules and what can be done to mitigate them. [1/17]
- House Committee Holds Hearing Today on QM Rule
House Financial Services Committee will hold hearing on how prospective and current homeowners may be harmed by the CFPB's Qualified Mortgage Rule. [1/14]
- NCUA on QM and Non-QM Loans
Supervisory letter states that emphasis in the field will be safety and soundness, not solely on the basis of whether a loan's status is Qualified Mortgage or not. [1/10]
- Will Interest-Only Loans Survive in Post-QM Era?
At least for one lender, the answer is yes, it will continue to offer interest-only loans, even after the CFPB's Qualified Mortgage rules go into effect Jan. 10. Bank of the West, based in San Francisco, says that it has reviewed its underwriting criteria and feels comfortable that its borrowers have the ability to repay the loans once the interest-only period has expired. [1/7]
- One Week Left: NCUA Issues Regulatory Alert on Mortgage Rule
NCUA has issued Regulatory Alert 14-RA-01 to provide further guidance in complying with the upcoming Ability-to-Repay/Qualified Mortgage Rule. In the Guidance, NCUA points out that since the underwriting criteria required under the ATR/QM Rule is broader than the requirements under Part 701 of the NCUA Rules and Regulations and most state rules, that compliance with the ATR/QM rule should ensure compliance with Part 701. However, compliance with Part 701 may not ensure compliance with the ATR/QM Rule. [1/3]
- Last-minute Checklist for Dodd-Frank Day (Jan. 10) Preparations
Kudos to you if you've dealt with the big things, such as ability to repay and qualified mortgage rules and the new RESPA servicing requirements. But there are a myriad of small things to deal with, too, before Jan. 10th's rules go into effect. Here's a checklist. [1/2]
- 2014 Forecast: Housing Recovery to Struggle Due to Underemployment and Stricter Mortgage Rules
Forecast sees unemployment and under-employment among the 25- to 35-year-old cohort as having a chilling effect on the number of first-time homebuyers, the group that historically has fueled growth in the housing ecosystem. Also, new qualified mortgage (QM) and ability-to-repay rules will exclude somewhere between 10-20% of borrowers who would have qualified for a loan in 2013. [12/30]
