The Consumer Financial Protection Bureau (CFPB) issued new guidelines on Qualified Mortgages that provide a standard definition for home mortgage lending. The regulation also provides a benchmark for how Qualified Residential Mortgage, the risk retention standard for securitization of mortgage loans, will be defined. 

Under the Dodd-Frank Act, lenders are required to ensure borrowers have the ability to repay their loans. If lenders issue loans meeting the QM definition under the CFPB’s new rules, they will be deemed to have complied with the Ability-to-Repay rule and offered special protection under the rules.

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