Reps. Shelley Moore Capito, R-WV and Sean Duffy, R-WI, respectively chairman and vice chairman of the subcommittee, had not viewed the CFPB’s analysis on QM.
Among the critical areas that mortgage lenders must pay close attention to in the CFPB’s ability-to-repay, qualified mortgage rule is what’s known as Appendix Q, which contains detailed underwriting guidance on how creditors must calculate the debt-to-income ratio in order to make a general QM loan subject to the 43 percent DTI limit. As adopted, Appendix Q generally requires items to be considered and verified for the two prior years, and requires well-documented projections for the following three years. However, on April 22...
The National Association of Federal Credit Unions is apprehensive about the unintended consequences of the Federal Housing Finance Agency’s decision to limit Fannie Mae and Freddie Mac future mortgage purchases to ‘qualified mortgages’ as defined by the final rule issued earlier this year by the CFPB. Earlier this month, the FHFA directed the two government-sponsored enterprises to limit their future mortgage acquisitions to loans that meet the requirements for a qualified mortgage, including those that meet the special or...
Most of the CFPB’s requirements stemming from its blizzard of mortgage rulemakings in January take effect sometime next year. But there are a few notable exceptions, including the Truth in Lending Act ban on mandatory arbitration provisions in certain mortgage loans, which kicks in June 1, 2013. “Lenders now using mortgage loan documentation containing such provisions should take steps to ensure that they (and references to them) are removed from documentation to be used for loans that will be subject to the ban,” said Alan...
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