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CFPB Extends Compliance Date for New QM Rule

Posted To: MND NewsWire

The Consumer Financial Protection Bureau (CFPB) has proposed to delay the mandatory compliance date of the General Qualified Mortgage (QM) final rule from July 1, 2021 to October 1, 2022. The rule, proposed last June, is designed as a replacement for the so-called GSE patch. CFPB says it is proposing the extension to ensure that homeowners struggling with the financial impacts of the COVID-19 pandemic have the options they need. As originally written at the time of the housing crisis, the Ability to Repay/Qualified Mortgage Rule (ATR-QM Rule) provided a safe harbor to protect lenders from lawsuits charging them with failing to appropriately quantify a borrower’s ability to repayment a loan. In general, the QM rule requires that a loan comply with prohibitions on certain loan features, points…(read more)

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