FNMA Survey Indicates QM Rules Lead to Increased Lender Costs

FannieMae has released a survey that indicates the CFPB’s Ability-to-Repay (“ATR”) and Qualified Mortgage (“QM”) rules will lead to increased lender costs.  Specifically, most firms (74%) reported that they expect their operational costs to increase as a result of QM rules. Lenders, on net, expect to tighten credit standards as a result of QM rules, with 36% of lenders reporting expected tightening and 6% of lenders reporting expected easing.  In addition, most lenders (80%) say they “do not plan to pursue non-QM loans” or prefer to “wait and see (business as usual). Larger lenders are more likely to pursue non-QM loans to increase their market share.

Topics:  Ability-to-Repay, CFPB, Fannie Mae, Mortgages, Qualified Mortgage Rule

Published In: Consumer Protection Updates, Finance & Banking Updates, Residential Real Estate Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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