what is safe harbor rule
Safe harbor (law) A safe harbor is a provision of a statute or a regulation that specifies that certain conduct will be deemed not to violate a given rule. It is usually found in connection with a vaguer, overall standard. Analogously, unsafe harbors describe conduct that will be deemed to violate the rule.
the CFPB will continue to study. As in the small creditor definition, the lender must evaluate the borrowers debt-to-income ratio (or residual income), but is not required to adhere to the 43% ratio used in the general definition. Safe Harbor vs. Rebuttable Presumption When a loan gains status as a Qualified Mortgage, it carries with it a legal presumption of complying with the Ability to Repay requirements. The FPâs final rule creates two different kinds of legal presumption: a safe harbor and a rebuttable presumption. Under a safe harbor, a borrower is unable to challenge whether the lender met its ability to repay obligations.