The National Association of Realtors Tuesday praised the finalversion of the federal regulation mandating qualified residentialmortgage procedures under the Dodd Frank Financial Reform Act.

QM loans, first defined by the CFPB, establish the borrower'sability to pay during the underwriting process. The loansalso enjoy a “safe harbor” from borrower litigation should theborrower sue the lender over a loan failure or foreclosure.

NAR praised the final rule for focusing on “sound underwriting”to help guarantee a loan's soundness instead of requiring largedown payments.

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