A provision in the Dodd-Frank law that sets up "qualified mortgage" as a standard for lending could strangle a housing recovery, the National Association of Home Builders told a congressional subcommittee.
NAHB First Vice Chairman Rick Judson said the Consumer Finance Protection Board needs to tread carefully in writing regulations to enforce the law's language. "Overly restrictive rules will prevent willing, creditworthy borrowers from entering the housing market," he said.
NAHB argues that creditworthy loans in place now would fall out of the "qualified" category, and the mortgage market will tighten substantially as lenders become even more cautious.
From the article:
The National Association of Home Builders (NAHB) told Congress today that proposed mortgage lending reforms under the Dodd-Frank Act must be imposed in a manner that causes minimum disruption to the mortgage markets while ensuring consumer protections. ...
