Feds Say QM Loans Won't Spur Fair Lending Suits

Law360, New York (October 22, 2013, 6:37 PM EDT) -- Federal banking regulators on Tuesday said that banks and other lenders that make only so-called qualified mortgages when new home loan rules kick in in January will not face fair lending litigation, alleviating a major concern for the industry.

Banks and other lenders had worried since the QM rule was unveiled in January that they could be at risk of lawsuits under the disparate impact theory if they only issued QM loans, as many have said they are likely to do. But five federal banking and...
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