Below you will find a curated list of QM-related news and commentary from across the Web. This page is updated weekly with the latest stories appearing at the top.
‘Qualified’ Loans, Redefined
New York Times; November 7, 2013
This story recaps the key requirements of a QM loan, including the 43% debt-to-income ratio limit. Nothing new there. But it also contains an interesting statistic. According to Richard Cordray, director of the Consumer Financial Protection Bureau (the government agency that created the new rule), an “estimated 95 percent of mortgage loans being made in the current market fit the criteria.”
http://www.nytimes.com/2013/11/10/realestate/qualified-loans-redefined.html
HUD Proposes ‘Qualified Mortgage’ Definition
HUD.gov; September 30, 2013
The Dodd-Frank Act requires the Department of Housing and Urban Development (HUD) to develop its own definition of a Qualified Mortgage, or QM. This definition will be applied to FHA loans that are insured through the Federal Housing Administration, which is part of HUD. The press release below includes a link to HUD’s proposed definition. You can also download their proposal from our documents page.
http://portal.hud.gov/hudportal/HUD?src=/press/press_releases_media_advisories/2013/HUDNo.13-151
Can the Mortgage Market Crash Again?
CNBC; September 17, 2013
Diana Olick, real estate writer for CNBC, explores the potential for another meltdown of the mortgage industry with an emphasis on QM and other lending regulations. She points out that Fannie Mae and Freddie Mac will soon limit their purchases to loans that meet the definition of a qualified mortgage, and that most lenders are already complying with the forthcoming rule.
http://www.cnbc.com/id/101036630
Cordray: CFPB Listened and Adapted QM Accordingly
Mortgage News Daily; September 11, 2013
Richard Cordray, director of the Consumer Financial Protection Bureau (CFPB), recently told attendees of the American Mortgage Conference in Raleigh, N.C. that the CFPB crafted the QM rule in such a way that “traditional lending practices should not be put into question.” According to Cordray, the agency was concerned about the constrained credit seen in recent years, and tailored the QM rule accordingly.
http://www.mortgagenewsdaily.com/09112013_cordray_cfpb.asp
Mortgage Proposal Aims to Avoid Market Meltdown
MarketWatch; August 28, 2013
This story followed the announcement that another federal lending rule (the qualified residential mortgage, or QRM) would mirror the previously published QM rule. So essentially, the federal government is aligning the two rules for the sake of simplicity. Both rules will cap total debt-to-income (DTI) ratios at 43% and limit loan terms to 30 years, among other requirements.
http://www.marketwatch.com/story/mortgage-proposal-aims-to-avoid-market-meltdown-2013-08-28