On February 25 MBA submitted a comment letter on the Consumer Financial Protection Bureau’s concurrent proposal–released simultaneously with the Final Rule–and amending this final ability to repay/qualified mortgage rule.
The comment letter calls for the removal of all individual and mortgage broker compensation from the 3 percent points and fees limit by applauding the CFPB’s netting approach that would address these issues, but then calling for a complete exclusion in order to solve the problems raised by their inclusion. MBA used the opportunity provided by the CFPB to raise other concerns with the final QM rule in the hopes that they would consider these issues to provide solutions and guidance early in the implementation process.
MBA’s comments supported the amendments that would exempt from the ability to repay requirements to certain government refinance programs and community development programs, as well as certain charitable creditors–provided these exemptions are clearly articulated and delineated. Finally, MBA expressed approval for the expansion of the safe harbor for smaller creditors that hold loans in portfolio and called for an expanded safe harbor for all loans in order to remedy issues with the average prime offer rate that unintentionally undermine the protections.
