Federal, Regulation

House Financial Services Committee to hold hearing on impact of QM rule

170px-Seal_of_the_United_States_House_of_Representatives.svgThe House Financial Services Committee announced recently that the Subcommittee on Financial Institutions and Consumer Credit will hold a hearing on the consumer impact of Dodd-Frank’s Qualified Mortgage rule on Jan. 14.

The subcommittee hearing will be held at 10 a.m. and will be chaired by Rep. Shelley Moore Capito (R-W.Va.).

The CFPB’s Qualified Mortgage rule provides that a potential borrower’s debt-to-income ratio cannot be pushed above 43 percent of gross monthly income, and if a borrower falls behind on payments, servicers are generally required to initiate contact with borrowers.

A lender that makes a QM, which cannot have risky features, is presumed to have satisfied the ability-to-repay requirements, providing lenders some legal protection. The rule is scheduled to take effect on Jan. 10.

Comments are closed.