QM Rule

The QM Rule (Qualified Mortgage Rule) is a regulation in the United States that aims to make home loans safer for borrowers. It sets standards for lenders, such as limiting the borrower's debt-to-income ratio, ensuring they can afford the mortgage, and requiring verifying income and assets. The goal is to prevent risky lending practices that could lead to foreclosures or financial hardship. Essentially, the QM Rule helps promote responsible lending by establishing clear guidelines so borrowers are more likely to be able to repay their loans.