CFPB releases ANPR on qualified mortgage provision

cfpb-logoThe CFPB announced an Advance Notice of Proposed Rulemaking seeking information pertaining to the expiration of the temporary qualified mortgage provision applicable to certain mortgage loans eligible for purchase or guarantee by the Government Sponsored Enterprises, Fannie Mae and Freddie Mac, in the Bureau’s Ability to Repay/Qualified Mortgage Rule.

The ANPR explains that the Bureau currently plans to allow the GSE patch to expire in January 2021 or after a short extension, if necessary, to facilitate a smooth and orderly transition away from the GSE patch.

In the ANPR, the Bureau solicits comments on possible amendments to the ATR/QM Rule, including whether to revise Regulation Z’s definition of a qualified mortgage in light of the GSE Patch’s scheduled expiration. The ANPR seeks information and comment on whether the definition of qualified mortgage should retain a direct measure of a consumer’s personal finances (for example, debt-to-income ratio), and whether the definition should include an alternative method for assessing financial capacity.

As previously reported, the CFPB announced an extension for the comment period for ANPR relating to the Home Mortgage Disclosure Act. The extension will now give interested parties an opportunity to review the bureau’s annual overview of residential mortgage lending based on the HMDA data financial institutions collected in 2018, as requested by a variety of stakeholders.

To learn more, visit the CFPB’s website.

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