Duke suggests ways to mitigate credit tightening under QM

Federal Reserve Board Governor Elizabeth Duke said aspects of the ability-to-repay rule and qualified mortgage standards may make credit access difficult for homebuyers with low credit scores, but offered some solutions for both lenders and regulators on possible ways to mitigate what she calls the “murky” path to easier credit conditions. Read on to learn what she sees as the effects of the QM rulemaking on access to credit and what she sees as a possible cure.