Did you know that mortgages sold to FHA, VA, Fannie and Freddie are allowed to exceed to the traditional 43% DTI (debt-to-income) ratio?  The rule that allows it is known as the QM Patch, which expires in 2021. But bankers are fighting to keep the exemption from the 43% DTI ratio in place, and are playing the race card to make their point:

Four of the largest mortgage lenders in the country are leading a coalition that is calling on the Consumer Financial Protection Bureau to make to changes to the Ability to Repay/Qualified Mortgage rule.

Wells Fargo, Bank of America, Quicken Loans, and Caliber Home Loans joined with the Mortgage Bankers Association, the American Bankers Association, the National Fair Housing Alliance, and others to send a letter to the CFPB, asking the bureau to eliminate the 43% DTI cap on “prime and near-prime loans.”

“Elimination of the DTI requirement for prime and near-prime loans would preserve access to sustainable credit for the new generation of first-time homebuyers in a safe and sustainable way and in accordance with the fundamental ATR requirements,” the group writes.

“This change is especially important for reaching historically underserved borrowers, including low- to moderate-income households, and communities of color.”

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