Truth in Lending: 9.3.3.4.1.1 General definition of qualified mortgage
A major feature of the ability-to-repay requirement is the establishment of a category of safer loans. The Act defines them as “qualified mortgages” and grants loans meeting such standards a presumption of compliance with the ability-to-repay requirement. The presumption becomes irrebuttable if a loan meets the CFPB’s specified “safe harbor” threshold.214 This presumption seeks to limit the risky practices and faulty underwriting that contributed to the financial crisis that preceded the passage of the Dodd-Frank Act.