CFPB issues two QM rules to promote access to responsible, affordable credit

The CFPB on Thursday issued two rules related to QM loans in an effort to promote access to “responsible and affordable” mortgage credit.

The first final rule, the general QM final rule, replaces the current requirement for general QM loans that the consumer’s debt-to-income ratio not exceed 43% with a limit based on the loan’s pricing, according to a CFPB press release. In the second final rule, the CFPB creates a new category for QMs — seasoned QMs, as previously reported.

The CFPB noted that issuance of the two new rules will support “a smooth and orderly transition away from the GSE Patch and maintain access to responsible, affordable mortgage credit upon its expiration.”

The GSE Patch will expire on the mandatory compliance date of the general QM final rule July 1, 2021 (or the date the GSEs exit conservatorship, whichever comes first), according to the CFPB.

The general GM final rule can be accessed here. The seasoned QM final rule can be accessed here.

The full CFPB press release can be accessed by clicking here.

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