The Consumer Financial Protection Bureau proposed delaying the mandatory compliance date of its general Qualified Mortgage final rule from July 1, 2021, to Oct. 1, 2022.
Background: The QM rule replaces the 43 percent debt-to-income limit with an approach based on loan pricing. Under the proposal, the DTI-based QM would remain in effect.
GSE Patch: The "GSE patch," which exempts Fannie Mae and Freddie Mac mortgage loans from parts of the QM rule, would remain in effect until the new compliance date unless the GSEs exit conservatorship before then.
ICBA Position: ICBA has repeatedly expressed concerns with the QM rule's use of loan pricing to determine the borrower's ability to repay a loan, which favors the largest mortgage lenders. Instead, ICBA has advocated a hybrid approach that retains a range of DTI thresholds.
Next: Comments are due by April 5.