A New Era for Qualified Mortgages: CFPB Finalizes QM Rules

The Consumer Financial Protection Bureau (CFPB) has finalized its rulemaking trio to reshape the boundaries of Qualified Mortgages (QMs). Since QM status offers compliance certainty to residential mortgage lenders and investors, the QM boundaries become guardrails for the market. The CFPB hopes the new rules will balance its competing goals of ensuring consumers’ ability to repay and ensuring continued access to responsible, affordable mortgage credit. Additionally, the CFPB is looking to make more room for private investors in residential mortgage loans and facilitate a transition from significant reliance on Fannie Mae and Freddie Mac, while offering consumer protection and bright-line compliance standards. Please join Mayer Brown partners Larry Platt and Kris Kully for a description and analysis of the new QM era.

Mayer Brown’s Global Financial Markets Initiative helps clients deal with the legal and business challenges resulting from the ongoing turbulence in worldwide financial markets. By mobilizing the firm’s global resources from multiple practices and offices, the initiative provides clients with knowledgeable and timely counsel on a broad spectrum of their legal needs.