After a year in which bankers have voiced steady opposition to the qualified mortgage rule, more than a third now say they will make non-QM loans in targeted markets, a major reversal from the industry's past stance.

Though 80% of bankers surveyed by the American Bankers Association expect the new rules will reduce mortgage credit, only 2% said the rules would force them to stop lending altogether. Thirty-six percent of bankers surveyed said they will make no changes to their underwriting practices, while 33% will restrict lending only to qualified mortgages, the survey found. Another 29% said they will originate QM loans with non-QM loans limited to targeted markets only.

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