Implications of the ability-to-repay rule and the qualified mortgage definition
On January 10, 2013, the Consumer Financial Protection Bureau (CFPB) issued the ability-to-repay (ATR) and the qualified mortgage (QM) rule – one of its “most important rules” yet, according to Richard Cordray, Director of the CFPB. This rule is “designed to assure the reliability of mortgages – making sure that lenders offer mortgages that consumers can actually afford to pay back.”1 The industry has about one year left – until January 10, 2014, when the rule becomes effective – to prepare itself for a new qualified mortgage world.
The impact of the ATR rule and the QM definition is not limited to origination activities alone. In fact, they have broad implications across the entire mortgage lifecycle, from origination to default management. Download this report for an overview of the ATR and QM rule, as well as potential implications for the industry.
1Richard Cordray, “Assuring consumers have the mortgages they can trust,” Consumer Financial Protection Bureau Blog, January 10, 2013 (http://www.consumerfinance.gov/blog/assuring-consumers-have-access-to-mortgages-they-can-trust//).