Qualified Mortgage Rulemaking: Protecting Borrowers from the Next Lending Crisis


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Published: January 10, 2013

The Dodd‐Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) includes a common sense reform that requires lenders to determine whether borrowers could actually repay a mortgage before that transaction takes place. The law also includes a streamlined way to meet this new requirement, which is making loans that meet a “Qualified Mortgage” standard. QM loans also have benefits for borrowers, because QMs are restricted from having harmful loan terms such as balloon payments, teaser rates and high fees.

Dodd-Frank charged the CFPB with writing rules to define which loans qualify as QM loans. This factsheet outlines key provisions in the final rule issued by CFPB on January 10, 2013.

Read CRL's press release on the final QM rules