Today the CFPB’s new Ability To Repay / Qualified Mortgage (ATR / QM) regulation goes into effect for loans with an application date of January 10, 2014 forward.
We are ready!
The rule is complex and operationally challenging, and there are still many aspects that remain unclear. The investor market is still working through its requirements for documentation and its appetite for different types of loan products.
However, there is a simple way to be in compliance with this complex regulation – make QM / Safe Harbor loans. QM loans are presumed to meet all of the Ability To Repay requirements under the regulation, and Safe Harbor status protects the company from any potential frivolous legal actions from borrowers who later want to claim that they did not have an ability to repay the loan.
Mason-McDuffie Mortgage is ready for QM (Qualified Mortgage) and ATR (Ability to Repay), in fact – so are our Loan Officers. Our audit has shown that less than 1% of our closed loans fell outside of the QM standard, which was far better than the 20% mark shown with the other lenders. It’s important to know how your company will compare. Here at Mason-McDuffie Mortgage, we are happy to already be positioned for success in originating loans that meet the QM standard. Our operations and compliance staff are production oriented while navigating the challenges of new regulations in our industry. As an originator it is important to know that you work on a platform of success in these ever changing times. So you must ask yourself, is your company is ready for QM?
Marilyn J. Richardson – President & CEO