The other day we learned that the Consumer Financial Protection Bureau is probably going with a
Everyone happy now? No such luck.
"The agency, according to sources, is also considering a maximum debt-to-income ratio of 43% for meeting the QM definition, which is a lower threshold than the industry had sought," reports American Banker's Kate Davidson.
"If lenders do not get a safe harbor, and you give a 43% DTI and the borrower goes to default, there's nothing stopping a borrower from filing suit in a state saying I should not have qualified and the lender should have known," says David Stevens of the Mortgage Bankers Association.
"The safe harbor is a very blunt tool, and while we want to encourage lending, there is a real risk of providing immunity to a lot of unaffordable loans, and actually taking a step back from what the statute was trying to do," says Mike Calhoun of the Center for Responsible Lending.
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