On January 10, the Consumer Financial Protection Bureau (CFPB) released its long-awaited federal Qualified Mortgage (QM) standard. The new federal guidelines, which are required by the Wall Street Reform and Consumer Protection Act (commonly known as the Dodd Frank Act), establish minimum requirements for all mortgage loans.
As anticipated, the QM standard considers community association assessments a key factor when determining if a borrower is qualified for a mortgage. Ensuring borrowers can afford to pay association assessments will lead to stronger communities and prevent foreclosures.
“The Ability-to-Repay standard will ensure home buyers are able to fulfill all their financial obligations related to owning their home—including their association assessments. This will create a greater degree of financial stability for community associations, while at the same time helping to ensure fairness and equity for all owners in the community,” said Thomas M. Skiba, CAE, chief executive officer of Community Associations Institute.
Davison Smith Certo Architects | Cleveland, Ohio