CFPB Mortgage Rule Said to Give Lenders More Protection
This article is for subscribers only.
U.S. lenders may get strong protections from lawsuits over most government-backed mortgages under rules being weighed by the Consumer Financial Protection Bureau, according to two people briefed on the policy.
The so-called qualified mortgage regulations would give banks including JPMorgan Chase & Co. and Wells Fargo & Co. safeguards against legal action arising from the underwriting process, according to the people who spoke on condition of anonymity because the discussions aren’t public. Protections would cover loans issued at prime interest rates to borrowers whose total debt-to-income ratio doesn’t exceed 43 percent.