Consumer Financial Protection Bureau Director Richard Cordray told the House Financial Services Committee this week that even if the CFPB adds a safe harbor provision to its qualified mortgage rule, lenders would still be vulnerable to lawsuits challenging whether they correctly determined a borrower’s ability to repay the loan.

Cordray called safe harbor a mirage and a bit of a marketing concept when responding to questions from Rep. Brad Sherman (D-Calif.), at Thursday’s hearing, saying, “Even safe harbor isn’t safe. You can always be sued for whether you meet the criteria or not to get into the safe harbor.”

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