The U.S. House of Representatives passed legislation on November 18, 2015, that would revoke the CFPB’s guidance on indirect auto lending and expand the qualified mortgage rule’s safe harbor. The Reforming CFPB Indirect Auto Financing Guidance Act, H.R. 1737, “[d]eclares without force or effect” the CFPB’s Bulletin 2013-02 (Indirect Auto Lending and Compliance with the Equal Credit Opportunity Act). The Portfolio Lending and Mortgage Access Act, H.R. 1210, would extend legal protections on QMs to all mortgages originated by banks and credit unions, so long the loan originator continues to hold the loan, even if the loan doesn’t comply with the Dodd-Frank Act’s “ability to pay” requirements. It is unclear how much traction the bills will have. The White House issued separate Statements of Administrative Policy that “strongly oppose[]” both the indirect auto and QM bills.
