At more than 2,300 pages long, including 250 amendments, the Dodd-Frank legislation will likely see more changes before all is said and done.
DocuTech COO Scott Stucky spoke with reporter Phill Britt on the impact of Qualified Residential Mortgage (QRM) in a November article on the progression of Dodd-Frank:
“Attached to the hip” with QRM is the Qualified Mortgage (QM) – loans that meet minimum underwriting standards to help ensure the consumer has a reasonable ability to repay the obligation, says Stucky.
The QM rule is intended to provide safe harbor for lenders if the consumer later defaults on the loan and attempts to sue the lender on the basis that the lender never should have approved the loan.
“Everyone is talking about QRM, but Dodd-Frank says that QM should not be any broader than QRM,” Stucky says. But such wording makes distinctions between the two vague at best.
For more insight into Dodd-Frank and the progress of QRM and QM, please check out the November issue of The ‘M’ Report (www.themreport.com).