The Consumer Financial Protection Bureau posted the 804-page Qualified Mortgage (QM) Rule on the afternoon of January 10, 2013.  The National Association of REALTORS Policy Staff has reviewed the document and developed an NAR Issue Brief available here.

Here are some quick points about the QM Rule from NAR?

  • The new QM rule will provide certainty and define the mortgage market with clear standards
  • The forth coming rule on Qualified Residential Mortgages (QRM) is less likely to have a specific requirement (like 10% or 20%) on down payments
  • The 3% cap for affiliated businesses is still a work in progress.  The positive side is that CFPB has asked for an additional information/comment period.  NAR will aggressively pursue the solutions outlined in legislation introduced in the 112th Congress. If necessary, the sponsors of “The Consumer Mortgage Choice Act” will introduce a new version for the 113th Congress.
  • The one year implementation window gives the market time to prepare and level out. The broadly defined QM should help the market improve