Ability to Repay and "Qualified Mortgage" Exemption

The Consumer Financial Protection Bureau on January 10, 2013, issued final regulations implementing provisions in the Dodd-Frank Act that require all creditors to determine a consumer's ability to repay a mortgage before making a loan. The final rule includes a “qualified mortgage” standard broad enough to encompass most current types of mortgages. It also provides "safe harbor" legal protection to most qualified mortgages.

ABA's Position 

ABA and a broad coalition of groups involved in housing strenuously advocated that the bureau structure its qualified mortgage as a legal safe harbor (rather than a less reliable "rebuttable presumption") that properly shields lenders when they originate compliant loans. They also urged the CFPB to craft a rule that encompasses a wide range of mortgage products and underwriting practices to protect credit availability. 

News

• CFPB's Basic Guide for Lenders: What is a Qualified Mortgage?, October 29, 2013
• CFPB At-A-Glance chart, listing all rules and updated resources, October 2013
• Interagency Statement on Fair Lending Compliance and the Ability-to-Repay and QM Standards Rule, October 22, 2013
• Director Cordray Remarks at the ABA Annual Convention, October 21, 2013
• CFPB Small Entity Guide and ATR/QM Comparison Chart, October 17, 2013
• Basic Guide for Lenders: What is a "Qualified Mortgage"?, October 2013
• HUD Proposes QM Guidelines for FHA Mortgages, October 2013
• CFPB Issues Quick Reference Chart on Small Creditors, September 2013
• FDIC to Issue New QRM Proposal, August 28, 2013
• CFPB Releases Second Update of Exam Procedures for Mortgage Rules, August 15, 2013
• 2013 CFPB Dodd-Frank Mortgage Rules Readiness Guide, July 2013
• Keating Op-Ed in Wall Street Journal on QM-Fair Lending Clash, June 27, 2013 
• CFPB Issues Proposed Modifications to Mortgage Rules, June 24, 2013
• Cordray Plans to Keep Mortgage Rule Effective Dates, June 19, 2013
• ABA: Revise Mortgage Rules to Avoid Harming Credit Worthy Borrowers, June 18, 2013
• CFPB Offers Mortgage Rule Implementation Webpage, June 2013
• CFPB Finalizes Amendments to Ability to Repay Rule, May 29, 2013
• FHFA Limiting Fannie Mae and Freddie Mac Loan Purchases to "Qualified Mortgages", May 6, 2013
• Proposed clarifications of the Ability to Repay/QM and Mortgage Servicing Rules, April 19, 2013
• Escrow Rule's 'Rural' Definition Affects QM Rule, Jan. 14, 2013
• CFPB Issues Final Ability-to-Repay/'Qualified Mortgage' Rule Jan. 10, 2013
• Keating: Final ‘Qualified Mortgage’ Standard Ensures Access to Safe Credit, Jan. 10, 2013
• Keating to NY Times: QM 'Safe Harbor' Essential, Jan. 7, 2013
• Keating Column Explains Need for QM Safe Harbor, Nov. 21, 2012
• ABA Statement: Safe Harbor Essential for CFPB's Qualified Mortgage Rule, April 27, 2012
• ABA Says Qualified Mortgage Rule Should Include Safe Harbor To Preserve Housing Credit, July 10, 2012
  
  

ABA Analysis

• ABA Staff Analysis: Proposed Amendments to the 2013 Mortgage Rules under the ECOA (Reg B), RESPA (Reg X), and TILA (Reg Z), July 2013
• A Strategic Guide to the ATR/QM Rules, June 2013
• Proposed Amendments to the 2013 Mortgage Rules under the Real Estate Settlement Procedures Act (Regulation X) and the Truth In Lending Act (Regulation Z),  April 2013
• Ability to Repay and Qualified Mortgage Standards under TILA-Final Rule, January 10, 2013
• Ability to Repay Proposed Rule, June 3, 2011
  
  

Comment Letters

• Joint Trade Association on Credit Risk Retention Re-Proposed Rule, October 30, 2013
• ABA Comments to Credit Risk Retention Proposed Rule, October 30, 2013
• ABA Comments to HUD on QM Definitions for FHA Programs, October 30, 2013
• ABA Comment to CFPB on Mortgage Origination, July 22, 2013
• ABA Comment Letter to CFPB on Amendments to Mortgage Rules Under RESPA-TILA, June 3, 2013
• ABA Comment Letter to CFPB on Proposed Amendments to 2013 Escrows Final Rule Reg. Z, May 3, 2013
• ABA Comments on Points and Fees under the Ability to Repay Rule, February 25, 2013
• ABA Comments on QM and Ability to Repay Standards, February 26, 2013
• ABA Comments on CFPB Reopening of Proposed Amendments to Reg Z, July 9, 2012
• ABA Comment Letter on Proposed Rule Amending Regulation Z: Ability-To-Repay Requirements, July 22, 2011
   
  

Testimonies

• Testimony on the new Ability to Repay and Qualified Mortgage Rules, June 18, 2013 
• Statement of Impact of Dodd-Frank Mortgage Reforms, July 11, 2012
• Testimony on Impact of Dodd-Frank on Small Banks, March 2, 2011
  
  

Letters to Congress/Regulators

• ABA Letter to Treasury Urging Mortgage Rule Phase-In Period, September 13, 2013
• ABA Letter and Survey on Bank Implementation of the New Mortgage Rules, August 23, 2013
• Joint Trade Letter on CFPB Mortgage Rule Clarifications, April 10, 2013
• Coalition For Sensible Housing Policy Letter to Regulators on QRM, March 1, 2013 
• Joint Trade Letter: Support of Safe Harbor QM, September 14, 2012
• Joint Trade Letter: Structure Qualified Mortgage as Safe Harbor, April 27, 2012
• Joint Trade Letter: Urge Broadly Defined Qualified Mortgage, April 12, 2012
• Joint ABA-Industry letter to CFPB urging that the "qualified mortgage" (QM) designation under pending ability-to-repay rule be structured as a legal safe harbor, April 27, 2012
• Joint ABA-Industry Letter to CFPB urging for the necessity of broadly-defined Qualified Mortgage (QM), April 13, 2012
• ABA Letter to the Bureau on QM, MLO Compensation and other regulatory issues, August 12, 2011
  
  

Final Regulations

• Amendments to the 2013 Mortgage Rules under ECOA (Reg B), RESPA (Reg X), and TILA (Reg Z), September 12, 2013
• Amendments to the 2013 Mortgage Rules under RESPA (Reg X) and TILA (Reg Z), July 10, 2013
• CFPB Finalizes Ability-to-Repay and Qualified Mortgage Standards Under TILA (Reg Z), May 29, 2013
• Final CFPB Ability-to-Repay/QM Rule
• CFPB Fact Sheet on Ability-to-Repay/QM Rule
• CFPB Summary of Ability-to-Repay/QM Rule