The rule presumes that a lender who makes a Qualified Mortgage (QM) has met the requirements of the ATR rule. QMs are generally loans that do not have the risky mortgage features that contributed to the mortgage crisis.
The Consumer Financial Protection Bureau (CFPB) is planning to allow the controversial QM patch rule expire in January 2021, however,
On May 9, 2014, the Department of Veterans Affairs (VA) issued an interim final rule defining a qualified mortgage (QM) for VA insured and guaranteed loans. Under the proposed rule, all purchase money origination loans and refinances other than certain interest rate reduction refinance loans (IRRRL) guaranteed or insured by the VA are defined.
Qualified mortgage protection began in January 2014, and provides legal protections for lenders who follow certain regulations in the Dodd-Frank Wall Street Reform and Consumer Protection Act..
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The Ability-to-Repay (ATR) / Qualified Mortgage (QM) rule, which is part of the post-crisis mortgage reforms created by the Dodd-Frank Wall.
Among the rules that CFPB has determined to fit that category are the Ability-to-Repay/Qualified Mortgage (ATR/QM) Rule and the Real estate settlement procedures act (RESPA) Mortgage Servicing Rule.
 The ATR/QM rule requires a creditor to make a reasonable and good. underwriting standards and the CFPB's general QM classification, the.
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The QM rule puts a limit on these additional charges, including those used to compensate mortgage brokers and loan officers. Generally speaking, the points and fees paid by the borrower must not exceed 3% of the total amount borrowed, if the loan is to be considered a qualified mortgage.
Overview of the QM Rule. According to the qualified mortgage rule, the following risky loan features are not permitted on a QM: An "interest-only" feature, when you pay only loan interest each month without paying down the loan balance.
All Qualified Mortgages (QM) are presumed to comply with this requirement.. agency loans until an agency issues its own QM rules, or January 10, 2021,
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The rule provides a safe harbor for Q Ms that are not higher-priced. Loans that are higher- priced and meet the definition of a Qualified Mortgage have a different protection, that of a rebuttable presumption that the creditor complied with the ATR requirements.