Understanding the ability-to-repay rule’s temporary QM category

The Consumer Financial Protection Bureau’s new ability-to-repay/qualified mortgage rule provides that a loan generally cannot be a QM if the borrower’s debt-to-income ratio is over 43 percent. However, the final rule also established temporary provisions that will allow loans over 43 DTI to qualify as QMs subject to certain conditions. Read on to learn what Jed Mayk, a Partner at Hudson Cook LLP, had to say about the CFPB’s temporary QM provisions during a recent October Research LLC webinar.