 TITLE: What’s a Qualified Mortgage? CONTENT: What Are the Benefits and Drawbacks of Qualified Mortgages?\n-----------------------------------------------------------\nThe main reason the CFPB developed the Qualified Mortgage standard was to restore investor confidence in the U.S. mortgage market and in securities based on mortgage loans, after reckless and abusive lending practices helped spark the 2008 housing crisis. While they are designed to protect lenders (and their shareholders) from the kinds of mass defaults seen a decade ago, QMs also offer some assurances for consumers: The ability-to-pay and DTI requirements for QMs can help prevent borrowers from getting in over their heads with mortgage payments they can't afford.\nOn the downside, meeting the strict requirements of a Qualified Mortgage makes the mortgage approval process a little more labor-intensive for applicants, and the QM process may raise the bar a bit too high for some would-be homeowners. In the past, some of the riskier mortgage types barred under QM standards let marginal borrowers enter the housing market, with the goal of transitioning to a more traditional mortgage within a few years. END