Mortgage industry groups are calling for the creation of a strong safe harbor clause that will shield lenders from litigation if they originate loans that comply with ‘Qualified Mortgage’ underwriting standards. 

 “Unless there is a true safe harbor for the QM, institutions will operate substantially below the threshold to help manage their litigation risk and credit will be tighter," said Bob Davis, executive vice president of the American Bankers Association.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.