CFPB Extends Mandatory Compliance Date for QM Rule; GSE Patch Remains in Effect

As expected, the Consumer Financial Protection Bureau today proposed to delay the mandatory compliance date of the General Qualified Mortgage final rule from July 1, 2021, to Oct. 1, 2022. The bureau clarified that if this proposal is finalized, “for covered transactions for which creditors receive an application on or after March 1, 2021 and before Oct. 1, 2022, creditors would have the option of complying with either the revised General QM loan definition or the General QM loan definition in effect prior to March 1, 2021.”

The proposal would also extend the temporary “GSE patch” until the new mandatory compliance date, or until the GSEs exit conservatorship, whichever comes first.

The announcement comes after the CFPB last month said it is considering a review the QM final rule and the establishment of a “seasoned QM” category of loans. Comments on the proposal are due April 5.