ICBA continues support for debt-to-income standard

ICBA and other groups expressed concern with a to-be-proposed change to the definition of Qualified Mortgages that would abandon the use of the debt-to-income ratios in favor of an approach based on pricing. The coalition letter details how low-income and minority borrowers would be harmed by the policy, which the Consumer Financial Protection has indicated it will release by May.

In a comment letter in September, ICBA urged the bureau to retain the QM debt-to-income ratio requirement as a measure of ability to repay because of its longtime use as a measure of mortgage underwriting.