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Home » Store » Ability to Repay » Industry Groups Across the Spectrum Generally Support Possible DTI ‘Right to Cure’ For QM

Industry Groups Across the Spectrum Generally Support Possible DTI ‘Right to Cure’ For QM

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Ability to Repay

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Representatives of the various segments of the mortgage banking world are mostly receptive to a hypothetical “right to cure” an otherwise qualified mortgage loan that inadvertently breeches the QM 43 percent debt-to-income threshold – despite the complexity associated with putting it into play. Most supporters of such a corrective mechanism agreed with the Consumer Financial Protection Bureau that utilizing it could be complicated. “We agree that creditors’ use of any DTI cure provision would be limited. Nevertheless, we do not believe the idea should be dismissed simply because it may be complicated,” the Consumer Mortgage Coalition said in its public comment letter to the agency. The Housing Policy Council of the Financial Services Roundtable also acknowledged...
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