QM (Qualified Mortgage) Rule

The Qualified Mortgage (QM) rule is a set of guidelines created by regulators to ensure responsible lending. It sets standards for lenders to make sure borrowers can repay their loans, reducing risky or unaffordable mortgages. QM loans typically have predictable features like manageable debt-to-income ratios and fixed or systematically verified payments. The goal is to protect consumers from being overburdened while promoting safe lending practices, which helps prevent situations like foreclosures and contributes to a healthier housing market.