Qualified Mortgage Guidelines will not Change Initially

The Consumer Financial Protection Bureau (CFPB) is getting feedback from lenders regarding the Qualified Mortgage (QM) rule, and while it may alter some of the guidelines down the road, it will wait until lenders adjust to the new set of guidelines. Speaking to a Women in Housing and Finance gathering, head of the CFPB’s Office of Mortgage Markets (OMM) Peter Carroll says, “At this point, any new guidance might be the straw that breaks the camel’s back.” According to what nationalmortgagenews.com tells MHProNews, the new QM rule, set to go into effect Jan. 10, 2014, does not include a method to correct a mistake after closing. Carroll says a lender should be able to repair an error within a certain amount of time. Additionally, the Office of Mortgage Markets is considering raising the threshold between prime QM loans that are better protected from litigation, and subprime loans, which receive less legal protection, from 150 basis points (bp) to 200 bp. The OMM monitors and analyzes mortgage markets and products and their affect on those involved.

(Image credit: HousingWire.com)

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