The CFPB's Missed Opportunity

SMITH BRAIN TRUST – The Consumer Financial Protection Bureau appears to have missed an opportunity to correct a nagging issue in its definition of a qualified mortgage, Maryland Smith's Clifford Rossi writes in HousingWire. And it goes to the heart of the borrower’s ability to repay.  

The CFPB, he writes, should take a holistic approach to credit evaluation – with the three C’s of mortgage underwriting. Beyond a borrower’s capacity, or ability to repay the loan, are credit and collateral. Here's what the CFPB should do now. Read: The CFPB Missed a Chance to Fix the QM Rule.