On Oct. 29, 2013, NAR commented on FHA's proposed Ability to Repay/Qualified Mortgage(QM) Rule. NAR largely supported FHA's efforts to track the Consumer Financial Protection Bureau's version of the rule while making some adjustments to the determination of whether a mortgage exceeds the Annual Percentage Rate (APR) and Average Prime Offer Rate (APOR) cap of 1.5%. NAR also recommended that FHA fix the discrimination against affiliate businesses in the calculation of the 3% cap on fees and points. Finally, NAR asked that FHA be flexible and make adjustments to its rule should there be unintended consequences like reduced access to credit in an already tight credit environment. The rule is expected to take effect in 2014.
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