Patch Expiration Will Hit Young, Old, and Non-Traditional Earners

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Posted To: MND NewsWire

Several weeks ago we summarized CoreLogic’s first cut at quantifying the potential effects of the planned expiration of the Consumer Financial Protection Bureau’s (CFPB’s) Qualified Mortgage “GSE Patch.” In his blog article, CoreLogic’s Pete Carroll found that roughly 16 percent or $260 billion of 2018 mortgage loan origination volume was considered to be a qualified mortgage (QM) due to exemptions granted through the Patch. Roughly three-quarters of that share were estimated to have a safe harbor through that patch – i.e. the lender is assumed to have made a reasonable determination of the borrower’s ability to repay and is thus essentially immune from legal action if there is a default. About 4 percent were considered QM Rebuttable Presumption loans, i.e. without that legal protection. The…(read more)

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