Qualified Mortgages: CFPB Seeks Comments on Reshaping Residential Mortgage Underwriting

The Consumer Financial Protection Bureau (CFPB) is continuing its rulemaking process to reshape its Ability to Repay Rule and the scope of residential mortgage loans protected by Qualified Mortgage (QM) status. The CFPB is proposing to shift the QM boundaries by swapping out one threshold based on the consumer’s debt-to-income ratio for a loan-pricing threshold. Once that shift is finalized and effective, the CFPB would allow the temporary QM status for Fannie Mae and Freddie Mac-eligible loans to expire. How would those changes reshape the residential mortgage landscape for borrowers, lenders and investors?

Please join Mayer Brown partners Larry Platt and Kris Kully for a discussion of these proposed revisions and their effects.

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