MBA Statement on CFPB Final General QM, Seasoned QM Rules
Last Thursday, the Consumer Financial Protection Bureau issued final rules related to qualified mortgage loans.
The first final rule, the General QM Final Rule (https://www.consumerfinance.gov/rules-policy/final-rules/qualified-mortgage-definition-under-truth-lending-act-regulation-z-general-qm-loan-definition/), replaces the current requirement for General QM loans that the consumer’s debt-to-income ratio not exceed 43 percent with a limit based on the loan’s pricing.
In the second final rule issued (https://www.consumerfinance.gov/rules-policy/final-rules/qualified-mortgage-definition-under-truth-lending-act-regulation-z-seasoned-qm-loan-definition/), the Bureau creates a new category for QMs, Seasoned QMs.
On Friday, Mortgage Bankers Association President and CEO Bob Broeksmit, CMB, released the following statement regarding the final General QM and Seasoned QM Rules:
“MBA applauds the Bureau for releasing the final General and Seasoned QM rules. The revisions to these rules will preserve and expand responsible access to affordable credit while retaining core consumer protections. In particular, these rules remove cumbersome requirements for non-traditional sources of income and expand consumers’ choices. MBA appreciates the Bureau’s effort to seek stakeholder input, and we look forward to continuing to work together on other issues aimed at protecting consumers.”