CFPB Finalizes Extension to GSE QM Patch

The CFPB today finalized a rule extending the temporary “GSE patch,” which grants QM status to loans eligible to be purchased or guaranteed by Fannie Mae or Freddie Mac, until the QM rule changes are finalized and take effect. Meanwhile, the bureau will continue developing final rules on the general QM loan definition and its proposal for a new category of “seasoned” QMs.

The American Bankers Association has welcomed the CFPB’s efforts to extend the GSE patch. The association earlier this year urged the bureau to retain the patch not just until the QM rule takes effect but six months beyond that date to allow creditors adequate time for implementation and systems changes and to avoid disruption.