Below is a link to A Strategic Guide to the ATR/QM Rules (Guide), Dechert LLP’s analysis for the American Bankers Association (ABA) of the Ability-to-Repay (ATR) and Qualified Mortgage (QM) rules adopted by the Consumer Financial Protection Bureau (Bureau). The Guide will help lenders address the new risks in mortgage lending and implement the Bureau’s rules consistent with applicable regulatory and corporate governance requirements.
Also below is Dechert’s Ability-to-Repay/Qualified Mortgage Legal Stress Test – a broader legal product that sets forth a methodology for lenders additionally to identify and evaluate, among other things, new repayment risks and defenses, fair lending issues related to QM product choices, and the requirements and valuation haircuts that secondary market participants will impose on lenders under the ATR and QM rules. This ATR/QM Legal Stress Test provides lenders with the tools to make and document complex business decisions in this new developing mortgage market and present them to their boards of directors. Lenders who have properly documented their mortgage policy and procedures decision-making processes will be better equipped to respond to regulatory and private party challenges. Our ATR/QM Legal Stress Test is structured to be available to large and small lenders.