Trade Groups Push CFPB For Broad QM Definition

Posted by Orb Staff on September 17, 2012 No Comments
Categories : Residential Mortgage

12398_sale Trade Groups Push CFPB For Broad QM Definition A coalition of 10 financial services trade groups sent a letter to Richard Cordray, director of the Consumer Financial Protection Bureau (CFPB), that calls for a broadly defined Qualified Mortgage (QM) rule that includes a legal safe harbor.

‘We believe a broad definition of QM with bright-line standards embedded in a legal safe harbor is the only sure means to serve the widest array of qualified borrowers with affordable credit,’ the trade groups wrote. ‘A legal safe harbor with such standards will reduce the uncertainty associated with QM litigation and ease the need for lenders and investors to establish conservative credit overlays.

‘At the same time,’ the letter continued, ‘it will permit claims by borrowers when the standards have not been met. In short, a safe harbor will result in far more mortgage borrowers obtaining sustainable credit than a QM rule with a rebuttable presumption.’

The letter was sent by representatives of the American Bankers Association, the American Financial Services Association, the Consumer Bankers Association, the Community Mortgage Banking Project, the Consumer Mortgage Coalition, the Credit Union National Association, the Housing Policy Council of the Financial Services Roundtable, the Independent Community Bankers of America, the Mortgage Bankers Association and the National Association of Federal Credit Unions.

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