Links in “Ability to Repay (ATR)/Qualified Mortgage (QM)”
- Proposal to Modify QM Definition of Points and Fees
In an effort to soften the requirements for a loan to be considered a qualified mortgage, a bill (Mortgage Choice Act, H.R. 3211) has been introduced to exclude title and escrow charges from the definition of points and fees. [10/23]
- Regulators: Fair Lending and QM Not Incompatible (In Theory, Anyway)
Five federal regulatory agencies jointly publish a statement addressing the fair lending risks associated with financial institutions who choose to offer only Qualified Mortgages. The agencies state that they do not find fair lending and Ability to Repay Rule incompatible, even if QMs are the only mortgages an institution chooses to make, "absent other factors" (like disparate impact, maybe?) Â [10/23]
- Majority of Credit Unions in Recent Survey Plan to Reduce Mortgage Offerings
A recent CUNA survey showed that about 60% of the respondents will likely offer fewer mortgage options as a result of the new mortgage regulations scheduled to go into effect in January 2014. About half of the credit unions surveyed indicated that they are undecided about whether they will offer mortgages that do not meet the definition of a âqualified mortgage.â Consumers could be the ultimate losers. [10/21]
- 1 in 5 Loans Today Wouldn’t Meet QM Standards
Fee levels and high APRs are the primary reasons that 20% of today's loans wouldn't qualify for qualified mortgage rules that go into effect in January. [10/21]
- Should Your Institution Make Only Qualified Mortgages?
A look at the pros and cons and misconceptions around the decision to limit your future mortgage portfolio to just those loans that meet the definition of a âqualified mortgage.â [10/17]
- HUD Proposes its Qualified Mortgage Definition
Proposal approaches that of other QM rules using a APOR (Average Prime Offer Rate) differential of APOR plus 115 bps maximum to establish Safe Harbor for HUD related mortgages. Standard may be used for other HUD programs. [10/2]
- HUD’s Proposed QM Definition Differs from CFPB’s Definition
To received "qualified mortgage" status under the proposed HUD rules, borrowers will not be required to have debt-to-income ratio of 43% or less, unlike CFPB rule, one of two key differences. [10/1]
- Disparate Impact: Waiting on the Supreme Court
How will qualified mortgage rules affect disparate impact analyses? Lawyer suggest holding out for Supreme Court to weigh in on the matter. [9/30]
- CFPB Provides Chart to Help Small Credit Unions Identify Qualified Mortgages
A new chart published by the CFPB is designed to help credit unions and other small mortgage lenders determine whether a mortgage they are considering meets the definition of a âqualified mortgage." [9/25]
- Economist: QRM Proposal a Formula for Another Housing Crisis
While many cheer the proposed qualified residential mortgage rule, Brookings Institution economist says low down payments and government backing that shields lenders from risk is a lethal combination. [9/20]
