WASHINGTON — The industry's positive reaction to the Consumer Financial Protection Bureau "qualified mortgage" rule, which governs mortgage underwriting, is prompting cautious optimism that a related securitization rule may also turn out better than expected.

The CFPB earlier this month used a broader definition for QM than previously feared, affording more loans legal protection under the CFPB's ability-to-repay standards. The bureau established a clear safe harbor for prime loans meeting QM criteria.

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