The CFPB released a consumer-focused guide to the Ability-to-Repay/Qualified Mortgage rule, which takes effect Friday. Part of the guide responds to several “fictions” about the rule, including that “[l]enders haven’t had enough time to update their systems and get ready for the new rules. The CFPB has amended the rules repeatedly, making it impossible for lenders to adapt in time.”
The bureau noted the year between the final rule and its effective date and said that its “various amendments” throughout the year have been intended to “ensure the effectiveness of the rules by making it easier for lenders to comply.” The bureau also stated that “most new mortgage originations will not be affected” after Friday.
The guide also covers what counts as a QM and responds to other assertions about the rule. These include statements that the rule will cut off mortgage credit, limit banks to making QMs only, cap the debt-to-income ratio for all mortgages, make it impossible for the self-employed to get a mortgage, require down payments and put mortgage brokers out of business.
Read the guide.