The Consumer Financial Protection Bureau is leading the effort to define “qualified mortgages” and “qualified residential mortgages” — QM and QRM, both of which will have a profound effect on your business. (Remember, at one point a 20% down payment was being considered as a requirement for the best loans.)
Today — Monday, July 9 — is the last day for public comment to the CFPB about the potential “ability to pay” rule.
In the run-up to the financial crisis, many borrowers were sold mortgages that they could not afford to pay back. In response, the [Dodd-Frank Act] requires lenders to make a reasonable and good-faith assessment of consumers’ ability to repay their mortgages.
As part of the broader ability-to-repay mandate, Congress also designated “qualified mortgages,” which are structurally safer and are underwritten according to standards that make it reasonable to expect that borrowers have an ability to repay.
Luckily, this isn’t Ye Olden Days, and you don’t have to call or send a telegram or whatever — there’s a handy Web-based form. So take a minute to fill it out and let the CFPB know that Realtors are very, very interested in what the rules for lending are going to be.