The Consumer Financial Protection Bureau finalized its ability-to-repay rule on Jan. 10, setting forth the criteria for a qualified mortgage. Despite vocal opposition from some industry participants, the final rule includes certain loan originator compensation and fees paid to lenders’ affiliates in the calculation of a cap on points and fees established as part of the QM definition.
In part two of this series, Dodd Frank Update examines the rule’s provisions related to loan originator compensation, including important rule revisions proposed by the CFPB.