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New mortgage rule explained

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Focus on Finance by Birgit Stubblefield

QUESTION: What is the Ability to Repay/Qualified Mortgage Rule and what does it mean?

Answer: The new Ability to Repay/Qualified Mortgage Rule or “QM Rule” is designed to require creditors to make a good faith determination that a borrower has the actual ability to repay a loan before credit is extended.


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