Need for an efficient and vibrant corporate bond market India has traditionally been a bank-dominated financial system with corporates raising resources through loan route/public deposits/FCCBs or private placements.
If the mortgage meets the QM standard, however, the lender receives greater protection from such potential lawsuits because it is presumed that the borrower had the ability to repay the loan. Loans that fall outside the QM standard may be more costly to originate than loans that meet the standard for at least four reasons, all else being equal.