CBA Comment to CFPB on Ability-to-Repay

Dear Ms. Jackson:
The Consumer Bankers Association (CBA)1 appreciates the opportunity to submit
comments in response to the proposal issued in conjunction with the January 10, 2013
ability-to-repay/qualified mortgage (QM) final rules (the Proposal). The Proposal
includes a request for comment on additional clarifications regarding the inclusion of
loan originator compensation within the 3 percent lender points and fees limit in the QM
definition. The Proposal also outlines exemptions for certain nonprofit creditors and
homeownership stabilization programs and an additional category of QM loans that
would include loans made by small lenders that are held in portfolio.
The comments in this letter are limited to the changes outlined in the Proposal. We are
continuing our review of the other aspects of the QM final rules issued last month and,
through this process, will identify other issues of concern that we will bring to the
attention of the Consumer Financial Protection Bureau (CFPB or Bureau), in
coordination with the CFPB’s recently announced implementation process.

Summary of CBA’s Comments

  •  In an earlier comment letter, CBA opposed the inclusion of loan originator

compensation within the 3 percent lender points and fees limit that would apply to QM
loans. We support the flexibility included in the Proposal to eliminate the double
counting that would occur when lenders compensate loan originators with funds
collected from consumers. We also continue to urge the CFPB to resolve other

To read the full Comment Letter, download the PDF.