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CFPB Swaps Debt-to-Income Limit for Price-Based Approach

The Consumer Financial Protection Bureau has issued two proposed rules that would extend its qualified mortgage patch and replace a current debt-to-income limit for borrowers with a price-based approach. So reports Realtor.com.

The CFPB said that a price-based approach would be a more representative measure of a borrower’s ability to repay than their debt-to-income ratio alone.

“The Bureau is committed to ensuring a smooth and orderly mortgage market throughout its consideration of these issues and any resulting transition away from the GSE Patch," CFPB director Kathleen Kraninger said in a statement.

Read the full article from Realtor.com.

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