The Consumer Financial Protection Bureau proposed delaying the mandatory compliance date of its general Qualified Mortgage final rule from July 1, 2021, to Oct. 1, 2022.
CFPB proposes delaying new QM rule
March 04, 2021 / By ICBA
The Consumer Financial Protection Bureau proposed delaying the mandatory compliance date of its general Qualified Mortgage final rule from July 1, 2021, to Oct. 1, 2022.
The Consumer Financial Protection Bureau proposed delaying the mandatory compliance date of its 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 proposal, the DTI-based QM would remain in effect.
GSE Patch: The "GSE patch," which exempts Fannie Mae and Freddie Mac mortgage loans from parts of the QM rule, would remain in effect until the new compliance date unless the GSEs exit conservatorship before then.
ICBA Position: ICBA has repeatedly expressed concerns with the QM rule's use of loan pricing to determine the borrower's ability to repay a loan, which favors the largest mortgage lenders. Instead, ICBA has advocated a hybrid approach that retains a range of DTI thresholds.
Next: Comments are due by April 5.
Subscribe now
Sign up for the Independent Banker newsletter to receive twice-monthly emails about new issues and must-read content you might have missed.
Sponsored Content
Featured Webinars
Join ICBA Community
Interested in discussing this and other topics? Network with and learn from your peers with the app designed for community bankers.
Subscribe Today
Sign up for Independent Banker eNews to receive twice-monthly emails that alert you when a new issue drops and highlight must-read content you might have missed.
News Watch Today
Join the Conversation with ICBA Community
ICBA Community is an online platform led by community bankers to foster connections, collaborations, and discussions on industry news, best practices, and regulations, while promoting networking, mentorship, and member feedback to guide future initiatives.
Join the Community Example Text
