SIFMA Statement on the CFPB's Qualified Mortgage Definition

Release Date: January 10, 2013
Contact: Liz Pierce, 212.313.1173,   

 SIFMA Statement on the CFPB's Qualified Mortgage Definition  

New York, NY, January 10, 2013 – SIFMA today released the following statement from president and CEO Tim Ryan in reaction to the final Ability-to-Repay rule and proposed rule amendments issued today by the Consumer Financial Protection Bureau (CFPB): 

“The qualified mortgage (QM) definition is critically important as it will set the parameters for the vast majority of mortgage lending in the United States. SIFMA appreciates the CFPB’s open and inclusive process in creating this new rule, and we are glad to see finality on the QM so that markets and firms can begin to move forward and adjust lending practices accordingly.  

“While we will continue to examine and quantify the implications of this rule with our members, upon first read we are pleased that the CFPB has recognized the importance of a true legal safe harbor for some mortgages that fall within the scope of the QM. We believe that few rebuttable presumption loans are likely to be made and that safe harbor loans will define the market, therefore it is critical that appropriate, balanced parameters be chosen. We therefore hope that the CFPB will show similar flexibility, inclusiveness, and responsiveness to feedback and be willing to calibrate various parameters of the rules prior to the implementation date. 

“SIFMA notes that the QM definition is a key first step of housing finance reform. Balanced reform is essential to revitalizing the flow of capital to the private securitization markets and increasing the availability of credit to American consumers. As regulators continue to finalize new rules, including risk retention and its associated qualified residential mortgage definition and the capital rules that apply to mortgage lending and securitization, it is vital that they coordinate to ensure all rules work together seamlessly. Failure to coordinate these new rules could lead to conflicting and restrictive regulation that would slow the flow of credit to consumers and hamper the housing market recovery and economic growth.”  


The Securities Industry and Financial Markets Association (SIFMA) brings together the shared interests of hundreds of securities firms, banks and asset managers. SIFMA's mission is to support a strong financial industry, investor opportunity, capital formation, job creation and economic growth, while building trust and confidence in the financial markets. SIFMA, with offices in New York and Washington, D.C., is the U.S. regional member of the Global Financial Markets Association (GFMA). For more information, visit 



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Katrina Cavalli


 Liz Pierce



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Carol Danko

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