The QM way is likely to be the only way for mortgages in near term
- Richard Cordray, head of the Consumer Financial Protection Bureau, told a congressional hearing that the soon-to-emerge qualified mortgage standards probably will be only standards lenders will feel they can use in the next two to three years.
- QM, required by the Dodd-Frank law, is still in flux after the CFPB extended comment time in May.
- At the same hearing, Mark Calabria, director of financial regulation studies at the Cato Institute, said he estimated that about 20% of the pre-crisis mortgage market had gone away as lenders tightened standards.
From the article:
Lenders are unlikely to originate home loans outside of the upcoming Qualified Mortgage universe for up to three years, Consumer Financial Protection Bureau Director Richard Cordray told a House subcommittee Tuesday. ...