In this report, we assess Director Kraninger’s contentious appearance today before HFSC at which she faced bipartisan skepticism over possible revisions to the qualified-mortgage (QM) standards (see FSM Report MORTGAGE114). Ms. Kraninger indicated today that the CFPB plans to issue an NPR replacing the 43 percent DTI threshold with one focused on loan pricing. The QM GSE patch would be extended until this rulemaking is finalized or until at least one GSE exits conservatorship. Members countered that a loan pricing threshold would not accurately assess ability to repay, increase FHA lending, and introduce complexity.
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