With today’s qualified mortgage rule, the CFPB has ensured that most consumers will continue to have access to safe credit. While the rule codifies many conservative lending standards currently in place, it is complex and technical, presenting an additional regulatory burden.
Qualified mortgage, as defined by the rule, imposes strict lending standards. While QM encompasses many of the loans being underwritten today, it must also interact with a number of other mortgage rules that CFPB will be issuing this month. There is a very real impact to these rules, and they will transform our lending practices and could restrict access to credit.
We commend the bureau for recognizing the need for a safe harbor to prevent a reduction in credit availability and unwarranted lawsuits that ultimately drive up the cost of loans for consumers.
We appreciate the thought, time and work CFPB put in to developing this rule. It is clear that the bureau has implemented tough consumer protections with an eye toward limiting market disruptions. ABA will continue to work with CFPB to achieve a strong housing recovery.