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CFPB Looks at Changing Qualified Mortgage Rule, Lifting DTI Limits

Posted To: MND NewsWire

With its so-called GSE Patch set to expire on January 10, 2021 (unless by some miracle the conservatorship of Fannie Mae and Freddie Mac (the GSEs) ends earlier), the Consumer Financial Protection Bureau (CFPB) has issued two proposed amendments to the Ability to Repay/Qualified Mortgage Rule (ATR-QM Rule). The ATR-QM Rule provides a safe harbor that protects lenders from lawsuits charging lenders for failing to appropriately quality a borrower’s repayment ability. In general, the QM rule requires that a loan comply with prohibitions on certain loan features, points and fee limitations. It also requires that a borrower’s a debt-to-income (DTI) ratio does not exceed 43 percent and that creditors “calculate, consider, and verify debt and income for purposes of determining the consumer’s DTI ratio…(read more)

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