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Under the plan it is now considering, lenders would have to make sure that borrowers can repay their loans and cover other living expenses without extensive defaults or reborrowing.
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During the SBREFA process and the Bureau's general outreach following the Bureau's release of the Small Business Review Panel Outline, many lenders and other industry stakeholders argued that the alternative requirements for covered short-term loans presented in the Small Business Review Panel Outline would not provide sufficient flexibility.
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Raj Date, the chief executive of Fenway Summer, said lenders are still likely to seek QM status for their mortgages.