Housekeeping: Inside CFPB’s Qualified Mortgage Rule

Law360, New York (February 26, 2013, 2:42 PM EST) -- On Jan. 30, 2013, the Consumer Financial Protection Bureau published its final rule, pursuant to Sections 1411 and 1412 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, amending Regulation Z to require mortgage lenders to take into account a borrower’s ability-to-repay when making a mortgage loan (the “Final Rule”).[1]

The Final Rule also defines “qualified mortgages” (QMs), which are presumed to satisfy the ability-to-repay requirement, providing a legal safe harbor for certain QMs, and a rebuttable presumption of compliance for others. In addition, the...
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