The CFPB has released a notice of proposed rulemaking (NPRM) announcing the Bureau’s intent to delay the mandatory compliance date of the General Qualified Mortgage (QM) Final Rule from July 1, 2021 to October 1, 2022.
In a previous statement, the CFPB announced that it would be looking to delay the July 1st date. The NPRM states that the delay in the mandatory compliance date would benefit consumers by ensuring “access to responsible, affordable mortgage credit,” and would allow more flexibility in helping consumers affected by the COVID-19 pandemic.
The revised General QM Final Rule, which removes the requirement that a consumer’s debt-to-income cannot exceed 43% and creates a “price-based limit”, became effective on March 1, 2021, followed by an optional compliance period. Until the mandatory compliance date, creditors are allowed to follow either the General QM loan definition in effect before March 1, 2021, or the new General QM loan definition. The Temporary GSE QM loan definition, or “GSE Patch,” which allows GSE backed loans with a debt-to-income ratio exceeding 43% to meet QM requirements, would also be available to creditors until the mandatory compliance date or until the GSEs exit federal conservatorship, depending on which occurs first.
The CFPB is accepting comments received by April 5, 2021, and anticipates making a final rule effective before the current mandatory compliance date of July 1, 2021.
**UPDATE:
April 27, 2021: The CFPB has extended the mandatory compliance date for the General QM Final Rule to October 01, 2022.
If you have any questions, please contact DocMagic’s Compliance Department.
