Lenders will have more than an additional year to
comply with the General Qualified Mortgage (QM) Rule. The Consumer Financial
Protection Bureau (CFPB) says it is formally delaying the mandatory compliance
date for the new rule from July 1, 2021 to October 1, 2022. The Bureau says it
is taking the 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.” The delay will also give lenders more
time to use the so-called GSE Patch. The Patch provides QM status to loans that
are eligible for sale to Fannie Mae or Freddy Mae (the GSEs). Use of the Patch,
however, may be limited by recent revisions to the Preferred Stock Purchase
Agreements between the U.S. Treasury and GSEs’ regulator and conservator the
Federal Housing Finance Agency.

 

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