CFPB proposes new category of QMs

The CFPB Tuesday issued a proposed rule to create a new category of seasoned qualified mortgages (QM). Bureau Director Kathy Kraninger announced the proposal during Tuesday’s Women in Housing and Finance event, which was attended by NAFCU.

In a release, the bureau said the new category is meant “to encourage innovation and help ensure access to responsible, affordable loans in the mortgage credit market.”

To qualify as a seasoned QM under the proposal, loans must be first-lien, fixed-rate covered transactions that have met certain performance requirements over a 36-month seasoning period. Covered transactions would also have to:

  • be held on the creditor’s portfolio during the seasoning period;


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