From BOL's 5/31/12 Top Stories:

LATE-BREAKING: Bureau reopens comments on "ability-to-repay"
The Consumer Financial Protection Bureau (Bureau) has announced the reopening of the comment period on the Federal Reserve Board's May 11, 2011 proposed rulemaking under Dodd-Frank Act amendments to the Truth in Lending Act. The proposal would require creditors to determine a consumer's ability to repay a mortgage loan and would set minimum underwriting standards for home mortgages. The Bureau is specifically requesting comments on additional information it has obtained on the performance of securitized mortgage loans and on certain related matters. The comment period will end July 9, 2012.

http://www.americanbanker.com/issues/177_105/mortgage-ability-repay-qualified-borrower-QM-1049788-1.html?ET=americanbanker:e10964:1368791a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=ABLA_Daily_Briefing_053112

Implementation will be at the end of 2012...

This whole rule is going to wreak havoc on consumers' ability to purchase a home in high priced areas, such as NJ.

A state that has affordable housing as a critical need!

Can't argue with that. Great googly moogly, if a lender isn't and hasn't been doing that all along, he's got no business lending!

From what I understand is the the QM would require a 20% down payment...

Admittidly, I haven't read the rule yet, just different commentaries, but isn't the QM standard for sellable loans? You would still have the inhouse portfolio option.

From what I've read, heard about, interpreted - it seems the QM standards would create repercussions on porfolio loans as well.

Maybe some relief from the CARD act as well:

http://www.cutimes.com/2012/06/07/cfpb-will-consider-reversing-card-acts-ability-to?ref=hp