Cordray defends QM, says only a sliver of the market falls outside boundaries
Consumer Financial Protection Bureau Director Richard Cordray defended his agencies qualified mortgage rule this week, while answering questions at a meeting of The Exchequer Club.
According to National Mortgage News, Cordray told the crowd he would be happy to debate the notion that the average cost for a non-QM loan will rise excessively when the new mortgage rules take effect next year. In Cordray's opinion, that's simply not going to happen.
The publication cites Cordray as saying the average cost for a non-qualified mortgage is forecasted to be less than 10 basis points higher than a qualified mortgage.
He also agreed with estimates from Moody’s Analytics economist Mark Zandi, who suggested only $20 billion of the $1.25 trillion mortgage market will fall outside the boundaries of the QM rule.