In the May 9, 2014, issue of the Federal Register (79 FR 26620), click here, the Department of Veterans Affairs (VA) published an interim final rule defining qualified mortgage to mean any loan guaranteed, insured, or made by VA. The interim final rule establishes that almost all VA loans that meet current underwriting standards will be safe harbor qualified mortgages, but that some streamlined refinances, also known as Interest Rate Reduction Refinance Loans (IRRRLs), will be considered rebuttable presumption qualified mortgages. In the interim final rule VA is also specifying income verification requirements for IRRRLs. The rule does not change VA’s regulations or policies with respect to how lenders are to originate mortgages, except to the extent lenders want to make qualified mortgages. The interim final rule became effective May 9, 2014, and the VA is requesting comments on the interim final rule pending publication of a final rule. Comments on the interim final rule must be received by the VA on or before June 9, 2014, and be submitted by any of the following methods: • Through • By mail or hand delivery to Director, Regulation Policy and Management (02REG), Department of Veterans Affairs, 810 Vermont Ave. NW., Room 1068, Washington, DC 20420. • By fax to (202) 273-9026 To receive consideration, written comments must be submitted through one of the methods specified above and indicate that they are submitted in response to “RIN 2900-AO65-Loan Guaranty: Ability-to-Repay Standards and Qualified Mortgage Definition under the Truth in Lending Act.”

Complete Memorandum