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Qm rule cfpb5/15/2023 Limited the Temporary GSE QM loan definition to covered transactions for which the lender receives the consumer’s application before the mandatory compliance date of the General QM Final Rule. In October 2020, a final rule (opens new window) Temporary GSE QMs are eligible to be purchased or guaranteed by either the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation (collectively, the GSEs), while operating under the conservatorship or receivership of the Federal Housing Finance Agency. Lenders must use the revised General QM loan definition for applications received on or after October 1, 2022. Under the April 2021 final rule, a lender can use either the original underwriting process (with the 43 percent DTI limit) or the new underwriting process (with price-based thresholds) for applications received from March 1, 2021, to September 30, 2022. The General QM final rule took effect on March 1, 2021, and it provided a mandatory compliance date of July 1, 2021. The December 2020 General QM Final Rule (opens new window)Īmended Regulation Z by replacing the General QM loan definition of debt-to-income (DTI) limit with a limit based on loan pricing and making other changes to the General QM loan definition. The CFPB also provides a compliance guide (opens new window) Credit unions should read the provisions of the CFPB’s April 2021 final rule to determine its effects on their operations. The April 2021 final rule affects the changes discussed in 21-RA-01. In January 2021, the NCUA issued Regulatory Alert 21-RA-01 informing credit unions of changes the CFPB made to the ATR/QM Rule in December 2020. The provision that created this loan category is commonly known as the GSE Patch. 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 final rule does not make other changes to the General QM loan definition. 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. ![]() This final rule affects two categories of QMs: Regulation Z contains several categories of QMs, including the General QM category and the Temporary Government-Sponsored Enterprise (GSE) QM category. Loans that meet Regulation Z requirements for qualified mortgages obtain certain protections from liability. 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. (You will be leaving and accessing a non-NCUA website.Īmending the Ability-to-Repay/Qualified Mortgage Rule (ATR/QM Rule) in Regulation Z. On April 30, 2021, the Consumer Financial Protection Bureau (CFPB) published in the Federal Register a final rule (April 2021 final rule) (opens new window) Dear Boards of Directors and Chief Executive Officers:
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