Qualified Mortgage Rule

Recently, Consumer Financial Protection Bureau Director Richard Cordray testified before the House Financial Services Committee. The Qualified Mortgage Rule was one of the hot topics. The rule requires mortgage lenders to consider the consumers’ ability to repay the home loan. Committee Chairman Representative, Jeb Hensaling of Texas opened the hearing with his concerns about the new rule that took effect on January 10^th. He and other committee members are concerned that lenders will not make some loans because they would no longer receive legal protections. Director Cordray disagreed… noting that the rule also permits loans to be considered qualified if they are purchased or guaranteed by a government-sponsored enterprise such as Fannie Mae or Freddie Mac. He added the agency will continue to monitor "whether we are drawing all the lines in exactly the right places."