The Consumer Financial Protection Bureau (CFPB) is soliciting comments on possible amendments to the Ability to Repay/Qualified Mortgage (ATR/QM) Rule. In particular, the CFPB is considering revising the current definition of a qualified mortgage under the Truth in Lending Act to use alternative methods to debt-to-income ratio to measure a consumer's financial capacity. These considerations are prompted by the January 2021 expiration of rules in which certain mortgage loans eligible for purchase or guarantee by Freddie Mac or Fannie Mae, which do not otherwise meet the debt-to-income ratio requirements, fall under the current definition of qualified mortgage. Release.
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