A CFPB proposal to change the definition of qualified mortgage in Regulation Z under the Ability to Repay/Qualified Mortgage Rule was published in the Federal Register.
As previously covered, the CFPB is considering whether a qualified mortgage (i) should be based on the direct measure of a consumer's personal finances, such as debt-to-income ratio or residual income, and how that measure should be structured, or (ii) should instead include an alternative method for assessing financial capacity (or should be limited to the express statutory criteria).
Comments on the proposed rulemaking are due by September 16, 2019.
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