Episode 30: The ATR/QM Rule After Five Years: What Lies Ahead? With ABA's Rod Alba
The CFPB's Ability-to-Repay Rule and the Qualified Mortgage safe harbor just hit the 5-year mark. The Bureau's recently-released assessment stated that increased costs to originate mortgages and the general lack of credit availability to prospective homeowners is NOT the result of the ATR/QM rule, but nonetheless is fully aware that the temporary "GSE patch" (which expires in less than 2 years) expands the QM definition and currently accounts for 21% of all originations, which represents a failure of the Rule to achieve its desired goals.
The Bureau is expected to issue a proposed rule to fix several problems in 2019. Listen in as the ABA's Rod Alba and I discuss what to expect in the coming year.