CoreLogic released ATR/QM Standards: Foundation for a Sound Housing Market, the first white paper in a series. In this edition, the Ability-to-Repay (ATR) and Qualified Mortgage (QM) rules are outlined and analyzed, helping to bring greater clarity to the requirements. The paper also features an explanation of why the rules were created and how lenders and servicers can benefit from the transparency provided to build investor trust over time and increase the flow of private capital into the market.
Key insights provided in ATR/QM Standards: Foundation for a Sound Housing Market include:
►Understanding the impacts of making a QM loan versus a non-QM loan and when a “safe harbor” kicks-in.
►An overview of how and why the ATR and QM rules were designed to put safeguards in place to protect borrowers who may not fully understand the terms of their obligations.
►Analysis of the government’s intention to encourage private capital flow into the housing finance system and how the QM and ATR rules create opportunities for this to occur.
►Consideration of how the Consumer Financial Protection Bureau will conduct reviews and examinations to verify compliance.
►Investigation of opportunities and challenges facing the non-QM mortgage market.