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On Friday, February 22, 2013, NAR submitted comments on the Ability to Repay/Qualified Mortgage (QM) concurrent proposal seeking guidance on the calculation of fees and points and other matters such as rural mortgage access and non-profit lending. NAR urged the CFPB to fix the cap on fees and points with regard to counting of originator compensation, GSE loan level price adjustments, and title insurance charges. NAR also urged the CFPB to address issues that would make it harder for rural lenders as well as non-profits such as Habitat for Humanity to serve the communities they serve.
NAR continues to work on a legislative fix on the issue of the fees and points calculation. NAR expects that Representatives Bill Huizenga (R-MI) and David Scott (D-GA) will reintroduce the "Consumer Mortgage Choice Act" shortly which addresses these issues. NAR is also working to have companion legislation introduced in the Senate. Without changes to the calculation of fees and points in determining whether a loan is a QM or not, many borrowers will no longer qualify for a QM loan or have the choices in mortgage finance they have even in today's already tight credit market. CFPB is expected to issue rules on the concurrent proposal in the Spring. The full QM rule and those changes go into effect in January 2014.