The Massachusetts Division of Banks has issued final amendments to the Documentation and Determination of Borrower’s Interest rule effective as of July 18 that establish a safe harbor for most home loans that meet the definition of a “Qualified Mortgage” under the regulations of the CFPB.

     Nutter Notes: Under the amended rule, any Qualified Mortgage other than a Qualified Mortgage that is also a “higher cost” home loan, would be deemed to be in the borrower’s interest under the Massachusetts regulation. The safe harbor even applies to Qualified Mortgages under the CFPB’s small creditor exemption.