A&B Abstract: Purchasers of residential mortgage loans who are conducting audits of residential mortgages that they buy in the secondary market are struggling to determine what documentation satisfies the “consider” requirement of the revised qualified mortgage (QM) standards that became mandatory on October 1, 2022. In fact, originators of residential mortgage loans are not in […]
ATR/QM
Evaluating the CFPB’s Proposed Delay of the QM Rule: Timing Considerations
A&B ABstract: The CFPB must finalize its proposed QM delay rule in April, likely leaving no room for delay. Background on ATR/QM and the Delay Rule On March 3, 2021, the Bureau of Consumer Financial Protection (CFPB) released a notice of proposed rulemaking (NPRM) to delay the mandatory compliance date of the General Qualified Mortgage […]
CFPB Director Provides Update Relating to QM Patch Expiration
A&B ABstract: A recent letter from Consumer Financial Protection Bureau (“CFPB”) Director Kathleen Kraninger provides clues about the potential future of the so-called “QM Patch.” Discussion: In a December 17, 2020 letter to Senator Mike Rounds (“Letter”), CFPB Director Kathleen Kraninger, revealed a number of interesting insights about the CFPB’s ongoing evaluation of the […]
Alston & Bird Issues Client Advisory on First-Known Decision Rendered by U.S. District Court, S. D. of Ohio (Eastern Division) Challenging CFPB’s ATR/QM Standards Favors Mortgage Industry
Alston & Bird Issues Client Advisory on First-Known Decision Rendered by U.S. District Court, S. D. of Ohio (Eastern Division) Challenging CFPB’s ATR/QM Standards Favors Mortgage Industry On April 24, 2019, Alston & Bird Partner Stephen Ornstein issued a Client Advisory to inform clients of an apparent case of first impression decided by the U.S. […]