NCUA regulatory alert addresses ATR/QM rule in Regulation Z

The NCUA on Monday issued a regulatory alert regarding the CFPB’s final rule amending the ATR/QM rule in Regulation Z.

The CFPB previously published a final rule in the Federal Register amending the rule in Regulation Z. With some exceptions, Regulation Z requires lenders to make a reasonable, good-faith determination of a consumer’s ability to repay any residential mortgage loan, according to the alert. Loans that meet Regulation Z requirements for qualified mortgages obtain certain protections from liability, and while Regulation Z contains several categories of QMs, including the General QM category and the temporary GSE QM category, the agency stated.

According to the NCUA, this final rule affects two categories of QMs:

  • General QMs: Extends the mandatory compliance date of General QM loans from July 1, 2021, to October 1, 2022, to preserve flexibility for consumers, particularly those affected by the COVID-19 pandemic. The final rule does not make other changes to the General QM loan definition.
  • Temporary GSE QMs: Extends the termination date of new GSE QMs to October 1, 2022, or when the applicable GSE exits federal conservatorship, if that happens earlier. The provision that created this loan category is commonly known as the GSE Patch.

The final rule is effective June 30, 2021.

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