QM – Definitive UPDATE – 13 more links


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Original Friday post: QM – A Quick and Dirty Summary

Lots more new stuff:

Read the original documents from CFPB:

1.  SUMMARY OF THE ABILITY-TO-REPAY AND QUALIFIED MORTGAGE RULE AND THE CONCURRENT PROPOSAL (7 pages)  http://files.consumerfinance.gov/f/201301_cfpb_ability-to-repay-summary.pdf

2.  ABILITY TO REPAY FACT SHEET (4 pages) http://files.consumerfinance.gov/f/201301_cfpb_ability-to-repay-factsheet.pdf

3.  (has 3) FINAL RULES ISSUED BY THE CFPB 2013 http://www.consumerfinance.gov/regulations/#finalrules


Other New Stuff:

QM Cements the Sorry State of Mortgages for Years to Come – Clifford Rossi – … Why? Because once lenders compare the $1,500 to $2,000 they make on an average loan to the penalties and legal costs associated with originating a loan outside the “safe harbor” provided by QM, they won’t write any loans other than those that meet the QM standards. … lots more  – American Banker Bankthink

MBA Chairman Debra Still Comments on Qualified Mortgage/Ability to Repay Rule  – MBA Press Release


(Dave Stevens on QM) Mortgage Policy Changes – video and transcriptvideo.cnbc.com – The new Consumer Financial Protection Bureau is laying out revised rules on mortgages, with CNBC’s Diana Olick. David Stevens, CEO of Mortgage Bankers Association, weighs in.

(QM and Reverse Mortgages) The CFPB released its Qualified Mortgage rule proposal. The long awaited rule, announced in conjunction with the CFPB’s ability-to-repay rule, will not impact FHA reverse mortgages.Reverse Mortgage Daily 
(small bank QM exception) Balloon Loans Could Be Trial Balloon – By Brian Collins and Mark Fogarty – … WE’RE HEARING it could be a case of one government agency not knowing what the other is doing. … Meanwhile, the Dodd-Frank Act generally prohibits lenders from making balloon mortgages … But there is an exception … Eligible institutions must have less than $2 billion in assets, make less than 500 first mortgages per year and hold the balloon loans in portfolio. … – National mortgage News 

SIFMA Statement on the CFPB’s Qualified Mortgage Definition 
Mortgage Lenders: Qualified Mortgage Rule Could Hinder Housing Recovery – by Jason Oliva – … the rule’s 3% cap on “points and fees” … it has the potential to discriminate against small businesses and limit credit access for low- to moderate-income borrowers, according to those industry participants.  … – Reverse Mortgage Daily 
(lots here) Mortgage Overhaul Begins With Borrower Scrutiny Measure – By Carter Dougherty – Bloomberg
Fitch Foresees Revival of Securities Market as QM Rule Rolls Out – BY: KRISTA FRANKS BROCK – The M Report 
CFPB elaborates on rules for high-cost mortgages, escrow accounts – kpanchuk
… Mortgages qualified as high-cost can no longer feature balloon payments,
… The guidelines also ban penalties for paying off high-cost loans early.
… bans fees for modifying loans, caps late fees at 4% of the payment past due,
… prevents closing costs from being rolled into the loan amount
… restricts the charging of fees when a consumer asks for a payoff statement,
… The high-cost loan guidelines also end the practice of encouraging a homeowner to default just to obtain refinancing options on a high-cost mortgage.
… more – Housingwire 


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