The Consumer Financial Protection Bureau is moving the mandatory compliance date of the General Qualified Mortgage final rule to Oct. 1, 2022. The CFPB stated that this 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 date was scheduled for July 1, 2021, according to the press release.
"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."
The CFPB has been working on the General QM final rule as a way to protect homeowners from debt and unaffordable, irresponsible mortgage lending, according to the bureau. 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. Lenders will also have more time to use the Government-Sponsored Enterprise Patch that gives QM designation to loans that are eligible for sale to Fannie Mae and Freddie Mac.
Click here to learn more about the CFPB's recent delay of the General Qualified Mortgage final rule.