QM queue

Category: RMBS Regulation

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New seasoned QM category could open door to increased MBS

On December 10, the Consumer Finance Protection Bureau (CFPB) issued the final rule for the criteria which define a Qualified Mortgage, and the introduction of an innovative seasoned loan category could provide a route for increased lending and greater MBS issuance, say market observers.

Under the new ruling, mortgages which do not initially meet the qualification benchmarks for QMs may become a QM if, over a 36-month period, they demonstrate the capacity for full and timely repayment.

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