CFPB Confirms Qualified Mortgage Rule Begins January 10th
by: Anna DeSimone
Despite letters from numerous trade associations, signatures from 117 members of Congress and 20 Senators strongly asking for a delay to the QM Rule, the CFPB has not issued any direct statements to lenders.
The following letter was issued to the general public by Richard Cordray at 3 p.m. on Friday, December 6, 2013.
For many Americans, buying a home is one of the biggest purchases they will ever make. People want to make their own purchase, but they want a little help: someone to stand by their side and make sure they are not getting tricked into a bad deal. They want a deal that’s clear and understandable, and they want to know that if you do your homework and follow plain logic, you can make a responsible decision that you can live with over time. And if you do run into trouble down the road, you will be able to talk with someone who is responsive in helping you work through your options.
That’s why we’ve taken action to make the mortgage market work better. We are making it a priority to give you the information you need about shopping for a mortgage, maintaining your current mortgage, and getting help if you need it. It’s why we wrote the Ability to Repay rule.
It’s a straightforward rule that does not change anything about your current mortgage, but for new mortgages received after January 10, 2014, it puts behind us the irresponsible lending that disrupted the housing market and so badly damaged our economy. But while it provides strong new consumer protections, it preserves needed access to mortgage credit.
The Ability to Repay rule is one of seven new mortgage rules that take effect in January.
For information on ow these changes will affect you, visit www.consumerfinance.gov/mortgage
For me, this is more than just an economic matter. Keeping people in their houses and giving people the chance to call a house a home is fundamental to keeping the fabric of American families alive. It’s why this Bureau was created, and I’m honored to play a small part in it.
I hope you’ll check out the resources we have for you, and share them with your friends and family
Thank you for continuing to support us – I’ll talk to you soon.
Richard Cordray, Director
Consumer Financial Protection Bureau
About the Author:
Anna DeSimone is President and Founder of Bankers Advisory, Inc. She can be reached at anna@bankersadvisory.com
Anna DeSimone founded Bankers Advisory in 1986 and is a nationally recognized authority in residential mortgage lending. She has received numerous industry awards and has authored more than 40 best practices guides and hundreds of articles.
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