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Comments on Qualified Mortgages to the Consumer Financial Protection Bureau

July 9, 2012
Consumer Financial Protection Bureau
Mortgage Lending
Comment Letter

The Center for Responsible Lending, Consumer Federation of America and The Leadership Conference on Civil and Human Rights responded to the CFPB's request for comments on qualified mortgages. Much of the comment letter focuses on an appropriate "bright line" debt-to-income ratio standard for QMs. Setting a narrow debt-to-income ratio for QMs would unnecessarily exclude a large share of borrowers from QM protections. This letter supports setting a baseline debt-to-income ratio on QMs while also giving lenders flexibility to go above it by considering other "compensating factors" that affect a borrower's ability to handle a loan successfully.