The Consumer Financial Protection Bureau announced this week it is moving the mandatory compliance date of the General Qualified Mortgage final rule to Oct. 1, 2022, as well as extending the temporary Government-Sponsored Enterprise Patch that gives QM designation to loans that are eligible for sale to Fannie Mae and Freddie Mac. The CFPB stated that the delay was made in order to help ensure access to responsible, affordable mortgage credit and preserve flexibility for consumers affected by the COVID-19 pandemic. The original deadline was scheduled for July 1, 2021.
"So many consumers have been hit hard by the pandemic and the economic downturn, and we want to ensure that responsible, affordable mortgages remain available," said CFPB acting director Dave Uejio. "As the mortgage market navigates an uncertain and challenging time, extending the date by which lenders must comply with the CFPB’s new General QM definition will help provide options and flexibility for both lenders and borrowers."
Delaying the rule will allow lenders to offer QM loans based on the homeowner's debt-to-income ratio, as opposed to solely based on a set of pricing thresholds.
The OBL opposed an extension, weighing in with industry concerns to the agencies as well as the Ohio congressional delegation.