Advanced Search

Volume 2014 - Number 15

April 17, 2014

Lenders Concerned About Litigation on Non-QMs, Feel Obligated to Offer the Mortgages Anyway

About two-thirds of banks are willing to offer loans that donít meet standards for qualified mortgages, according to a recent survey by the American Bankers Association. Lenders are concerned about the liability that comes with non-QMs, but borrower demand for non-QMs has prompted a wider range of mortgage offerings than many had projected after the Consumer Financial Protection Bureauís QM standards took effect. ďMore and more, in talking to our banks, I would say thereís an increased comfort in going beyond QM, doing business the way theyíve traditionally done business and expecting to meet either the QM or the ability-to-repay standard.Ē said Jonathan Miller, deputy director of the Federal Deposit Insurance Corp.ís division of depositor and consumer protection. At a meeting last week by the FDICís Advisory Committee on Community Banking, Derek Williams, president and CEO of Columbus Community Bank, said...

Subscribers to Inside Mortgage Finance have full access to all its stories and data online. Visitors may become subscribers for full access or may purchase individual articles and data.

Subscriber Log In

If you are a current subscriber or already purchased this article, please login below.

Forgot your password?

Already subscribe but haven't registered for all the benefits of the website?


A weekly "must read" for industry executives. Thoroughly covers regulatory, political, legislative and market issues in the residential mortgage business.



You can purchase this article for $55.00 without subscribing and always have access to it on

Pay Per View

Please contact Customer Service if you need assistance: 1-800-570-5744


The year is almost 75% done. How is mortgage origination volume at your shop?

We will fund about the same as we did in 2016.
We will fund more than last year – by a little.
We will fund more than last year – by a lot.
We will fund less than last year – by a little.
We will fund less than last year – by a lot.

vote to see results