Dive summary:

• A term that has caused worry for banks since it was established in financial reform laws – qualified mortgage – and thus has tightened lending now has a definition.
• The Consumer Financial Protection Bureau, which was to say what the term meant, has defined a qualified mortgage as one that limits points and fees, has no special features such as extra-long terms or interest-only periods and meets a standard for how much of a borrower's income can go for a mortgage.
• With limits on fees and points, it is unclear how lenders will react to the definition.

From the article:

In tandem, the bureau also unveiled the new Ability to Repay rule aimed at further protecting borrowers from bad mortgages. ...