QM: The Legal View by Jonathan Herman as featured in July Today’s Lending Insight

QM: The Legal View by Jonathan Herman as featured in July Today’s Lending Insight

The qualified mortgage (“QM”) rule aims to reduce risk in the marketplace by “wrapping” loan transactions with a “seal of approval” in order to ward off legal claims. In particular, when the lender follows certain ability-to-repay (“ATR”) requirements, the loan becomes subject to a “safe harbor” or “rebuttable presumption” defense to borrower or investor claims.

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