The Consumer Financial Protection Bureau (CFPB) yesterday issued two final rules revising the definition of “qualified mortgages” that the bureau said would promote access to credit and transition the mortgage market away from a regulatory exemption given to Fannie Mae and Freddie Mac, <em>National Mortgage News</em> reported. The CFPB finalized one rule establishing a new general QM standard, which was unchanged from a June proposal. It adopted a pricing threshold to determine if loans can avoid liability under ability-to-repay requirements, replacing the current debt-to-income limit of 43 percent. The final QM rule would give lenders relief for loans capped at 150 basis points above the prime rate. The bureau said that it determined that a loan’s price is a strong indicator of a borrower’s ability to repay and is a “more holistic and flexible measure” than DTI alone.
