Although the expiration of the Consumer Financial Protection Bureau’s rule allowing certain loans with high debt-to-income ratios to be granted qualified mortgage status would be credit negative for the government-sponsored enterprises, Moody’s found that letting the “QM patch” expire could be beneficial to some non-bank entities.
The analytics firm explained how the patch’s expiration, absent interim regulatory measures to improve the QM framework, could be bad for some entities but present opportunities for others.
Learn more about the firm’s findings.
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