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Final Rule Clarifies QM

CFPB addresses concerns raised

July 11, 2013

By Mortgage Daily staff

A final rule released this week addresses concerns about the qualified mortgage designation, servicing requirements and higher-priced lending.

The rule, which provides clarifications and updates to three mortgage rules proposed in April, was finalized Wednesday by the Consumer Financial Protection Bureau.

The final rule is entitled, Amendments to the 2013 Mortgage Rules under the Real Estate Settlement Procedure Act (Regulation X) and the Truth in Lending Act (Regulation Z).

The regulator said in yesterday's announcement that the final rule addresses several concerns brought to the CFPB's attention about qualified mortgages, mortgage servicing, and higher-priced mortgages.

Determination of debt-to-income ratios under the main definition of QM is clarified in the final rule, which is 161 pages in length.

The eligibility standard for some QM-designated agency loans is clarified by the publication.

The final rule makes it clear that the CFPB's Real Estate Settlement Procedures Act regulations don't preempt servicing regulations.

Also addressed are which loans are considered in determining whether the small servicer status exemption from servicing regulations applies.

In addition, the continuation of certain exclusions regarding higher-priced mortgage loans is clarified.

read final RESPA and TILA rule

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