BPI Joins Industry, Consumer Coalition in Response to CFPB’s Qualified Mortgage Proposal

On September 9, BPI joined a coalition of mortgage lenders, trade associations, and consumer advocacy groups in a letter responding to the CFPB’s advance notice of proposed rulemaking on its Ability-to-Repay/Qualified Mortgage (ATR-QM) rule, in light of the impending expiration of a temporary “patch” exempting GSE-backed loans from certain of the rule’s underwriting requirements. The letter makes several recommendations for the ATR-QM rule intended to preserve access to sustainable loans and avoid market disruption with the expiration of the GSE patch. Specifically, the letter urges the removal of the rule’s debt-to-income ratio underwriting requirement, from which the patch currently exempts GSE-backed loans, as well as the preservation and enhancement of the rule’s existing credit risk safeguards and consumer protections.