Realtors® Call for Broad Qualified Mortgage Definition to Help Consumers and Housing Market
April 13, 2012
On Friday, April 13, NAR joined a broad coalition of lenders, investors, housing professionals, consumer advocates and civil rights groups, in sending a letter to Richard Cordray, director of the Consumer Financial Protection Bureau, urging for a broadly defined Qualified Mortgage (QM) that covers a wide range of traditionally safe products and underwriting criteria. NAR believes that Congress intended for a broadly defined QM that establishes strong consumer protection against risky loan products, promotes mortgage liquidity in the market, incorporates important ability-to-repay standards, and offers lenders reduced litigation exposure. NAR is concerned that a narrow QM would force borrowers into a non-QM market where they would be burdened with significantly higher mortgage rates and fees or even be denied access to credit.