The CFPB on Tuesday delayed the mandatory compliance date of the general QM final rule from July 1, 2021 to October 1, 2022. The agency said that is taking this action to help ensure access to responsible, affordable mortgage credit, and preserve flexibility for consumers affected by the COVID-19 pandemic and its economic effects.
QM loans are presumed to be made based on the lender’s reasonable determination of the homeowner’s ability to repay the loan, and delaying the mandatory compliance date of the general QM final rule allows lenders more time to offer QM loans based on the homeowners’ debt-to-income ratio, and not solely based on certain pricing thresholds, according to the CFPB.
Delaying the final rule’s compliance date would also give lenders more time to use the GSE patch, which provides QM status to loans that are eligible for sale to Fannie Mae or Freddie Mac. The availability of the GSE patch after July 1, 2021 may be limited by recent revisions to the preferred stock purchase agreements entered into by the Department of the Treasury and FHFA, according to the CFPB.
The final rule can be accessed here.