IDS Compliance received Federal Register, Vol. 9, No. 90, dated Friday, May 9, 2014, which contains the Department of Veterans Affairs interim final rule definition of Qualified Mortgage and Ability-To-Repay required under the Truth in Lending Act. In general, The VA defines a Qualified Mortgage for the purposes of a VA Loan as being "any loan guaranteed, insured, or made by VA, with certain limitations on streamlined refinances, also known as Interest Rate Reduction Refinance Loans (IRRRLs)." All standard VA loans appear to have QM Safe Harbor status; however, IRRRLs may either have a "rebuttable presumption" status or a "safe harbor" status. Safe harbor status on IRRRLs is achieved when certain additional requirements are met.
IDS Compliance is reviewing this information and making plans for the best way to implement it into our system. The interim final rule is effective May 9, 2014, with a comment period that expires June 9, 2014. The rules states that the final-final rule should be published within 90 days of May 9 2014, or shortly thereafter with a matching effective date. IDS Compliance anticipates complete implementation of this new rule in our system before this date.