NationalMortgageNews reports with the mortgage industry complaining that the qualified mortgage (QM) rule issued by the Consumer Financial Protection Bureau (CFPB) will hinder hundreds of thousands of potential borrowers from obtaining a QM loan, HR Bill 1077 clears up the three percent cap on points and fees in the QM rule. The Consumer Mortgage Choice Act is being supported by the National Association of Realtors (NAR) and the Mortgage Bankers Association (MBA). Since points and fees on a QM cannot exceed three percent of the loan, QM loans are considered to be the least expensive and safest for borrowers. Before approving a loan, lenders have to make sure the borrower has the ability to repay it. As MHProNews has learned, low-income borrowers could suffer the most harm since it will be far less profitable to make smaller loans as opposed to larger ones.
