CFBP Amends 2014 Mortgage Rules

On October 22, 2014, the CFPB issued a final rule amending the Dodd-Frank mortgage rules that became effective January 10, 2014. The amendments include a points and fees cure under the ATR/QM rule, a modest expansion of the ATR exemption for certain non-profits and a slight expansion of the small servicer exemption for certain non-profit lenders/services.

Under the ATR/QM rule the total points and fees charged to a consumer generally may not exceed 3% of the loan amount in order for the loan to be considered a QM. Higher thresholds which vary with the loan amount apply to loan amounts less than $100,000. Under the amendment, a lender or secondary market lender who learns after loan closing that the points and fees cap was exceeded can retain QM status for the loan if it refunds the excess amount to the consumer with interest at the loan contract rate. The refund must be made within 210 days after consummation of the loan and the ability to cure is cut off if the