CFPB outlines qualified-mortgage rule

The Consumer Financial Protection Bureau issued a rule today outlining safe-harbor legal protection for qualified mortgages. The rule requires borrowers to have documentation proving they are able to repay loans, and it restricts balloon payments and upfront fees and points. In certain cases, banks can bypass debt-to-income restrictions for up to seven years -- an exception the CFPB made because of the fragile mortgage market.

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