On Tuesday, September 8, SFA submitted a response to the CFPB’s NPRM on the proposed General Qualified Mortgage (QM) definition. Notably, SFA members have divergent views on the use of the spread between the APR of a particular loan and the Average Prime Offer Rate (APOR) as a means of determining whether that loan receives the regulatory benefit of being a QM, which provides safe harbor from subsequent ATR claims and defenses.
Given the divergence of our members’ views, SFA has convened representatives from across the industry to form an ATR Task Force to determine whether and how the industry can fulfill the statutory mandates that gave rise to the ATR/QM regulatory regime, while providing dynamism and innovation within the mortgage space. SFA’s ATR Task Force is chaired by industry leaders who are highly renowned and deeply involved at every stage of the securitization process in both the QM and non-QM markets.
If you are interested in learning more about the letter or joining the SFA ATR Task Force, please contact [email protected]