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

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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

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

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(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.

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(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 
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(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 
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SIFMA Statement on the CFPB’s Qualified Mortgage Definition 
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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 
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(lots here) Mortgage Overhaul Begins With Borrower Scrutiny Measure – By Carter Dougherty – Bloomberg
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Fitch Foresees Revival of Securities Market as QM Rule Rolls Out – BY: KRISTA FRANKS BROCK – The M Report 
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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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