(CFPB) Recently, we released the Ability-to-Repay rule designed to protect consumers from irresponsible lending and begin to lay the framework for stability in the mortgage market.

This week, we issued an implementation plan to help ensure the industry effectively and efficiently puts these new protections into place, with the understanding that our rule should not unduly restrict lenders’ ability to make responsible loans. We estimate that the vast majority of loans originated today will meet the standards for a “Qualified Mortgage” so long as creditors follow the required procedures.

As part of the new rule, Congress also directed us to define a category of loans where borrowers would be more protected. So we released the criteria for a Qualified Mortgage. If you are a borrower getting a Qualified Mortgage, your loan cannot contain certain features that often have harmed consumers in the past, such as excess points and fees.
Read the full article via Qualified Mortgages Explained: CFPB | The Niche Report.