Among several flawed concepts in the Dodd-Frank Wall Street Reform and Consumer Protection Act are the Qualified Mortgage – Ability-to-Repay rules.

The QM concept was a reaction to the aggressive products in play before the financial crisis like adjustable-rate mortgages known as option ARMs.

But the many borrower protections provided by these rules are not germane to the issue in question: ‘Does the QM approach to market regulation make sense?’

Source: Mortgage Daily