The Consumer Financial Protection Bureau issued a final rule formally delaying the mandatory compliance date of its recently modified general Qualified Mortgage final rule from July 1, 2021, to Oct. 1, 2022.
Background: The QM rule replaces the 43 percent debt-to-income limit with an approach based on loan pricing. Under the CFPB’s newly announced delay, lenders will have the option of using the new rule or the DTI-based QM rule.
GSE Patch: The "GSE patch," which exempts Fannie Mae and Freddie Mac mortgage loans from parts of the QM rule, will also remain in effect until the new compliance date unless the GSEs exit conservatorship before then. However, the bureau said the GSEs may be limited by recent revisions to their Preferred Stock Purchase Agreements.
ICBA Position: In a comment letter, ICBA expressed support for the proposed delay and encouraged the bureau to reconsider using loan pricing to determine borrowers’ ability to repay. ICBA is also urging the FHFA and Treasury to delay and remove product and program restrictions included in the PSPA amendments, including the reference to the new QM final rule.
