Apr 26

Titan’s Mary Kladde and Ruth Lee have written an op-ed concerning the potential implications of QM rules, which is featured in today’s MBA NewsLink and MBA Servicing NewsLink. Here is an excerpt:

QM, if not defined appropriately, has the potential to crush the burgeoning recovery taking place in the housing market. Fears are that regulations could be so restrictive as to exclude many qualified borrowers, constrain necessary investor liquidity, impact the cost of capital and market capacity, and disproportionately exclude minority borrowers, who historically used high LTV mortgage loans at up to twice the rate of non-minority borrowers, from the dream of homeownership. Those fears are the direct result of both industry research on QM impact and the seemingly punitive motives of legislators, regulators and consumer advocates as telegraphed in congressional testimony and in the media. Beware the double-edged sword of unintended consequences!

[Read the full article here]

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