Consumer Bankers Association Statement on QM

January 16, 2013
Jean Marie Bunton

Washington, D.C. (January 16, 2013) – CBA is pleased the new rule establishes a broad definition of a “qualified mortgage” and lenders will have “safe harbor” protection from liability for most of these loans. This will prevent an unnecessary restriction in mortgage credit to consumers, while still ensuring that creditors consider consumers’ ability to repay. We appreciate the CFPB working with the industry on these issues.

We are continuing to review the 804 page rule and we will identify any issues that may be of concern to our member banks. So far, CBA has identified two concerns of note:

The first is the calculation of permissible points and fees to meet the qualified mortgage (QM) definition. Under the rule, lender points and fees exceeding 3% of the loan amount are not permitted, with the exception of a limited number of discount points. This includes fees charged by affiliates of the lender, which we believe will adversely affect consumer choice with regard to settlement services. We also are concerned about the inclusion of loan origination compensation, and we are pleased the CFPB has requested comment on this issue.   

A second concern is the amount of time provided to comply with the new rule. One year may be insufficient for many lenders, particularly given the number of other major regulations that will be implemented over the same period. The length of time is even more of a problem since the CFPB has asked for further comment on several issues, and will not finalize the rule until sometime in the spring.  

About CBA
The Consumer Bankers Association (CBA) is the trade association for today's leaders in retail banking - banking services geared toward consumers and small businesses. The nation's largest financial institutions, as well as many regional banks, are CBA corporate members, collectively holding two-thirds of the industry's total assets. CBA’s mission is to preserve and promote the retail banking industry as it strives to fulfill the financial needs of the American consumer and small business.

For more information, please contact Jeannie Bunton,, 202.552.6370, or visit