The Department of Housing and Urban Development is starting the process of issuing its own qualified mortgage rule after the Consumer Financial Protection Bureau issued its QM rule, which could be disruptive to the Federal Housing Administration single-family program.
According to HUD spokesman Brian Sullivan, the FHA has authority, under the Dodd-Frank Act, to review the CFPB rule and issue a separate ability-to-repay rule for loans guaranteed by FHA.
"Now that the CFPB rule has been issued, we're undertaking that process and will publish a proposed rule for comment in the near future," Sullivan told National Mortgage News.
"FHA lenders are already concerned about the CFPB QM rule because of certain changes to FHA mortgage insurance policies that will be going into effect soon. On April 1, FHA will raise its annual premium by 10 basis points. On a standard FHA loan, new borrowers will pay a 135-basis-point annual premium and a 175-basis-point upfront fee," writes American Banker's Brian Collins.
For the full piece see "HUD Starting Its Own QM Rule for FHA Loans" (may require subscription).