CFPB To Delay Compliance Date For Qualified Mortgage Rule

The CFPB stated that it expects to delay the July 1, 2021 mandatory compliance date of the General Qualified Mortgage ("QM") Rule and is considering whether to revoke or amend the "Seasoned QM" Rule.

As previously covered, on December 10, 2021, the CFPB adopted two rules that amend the definition of QMs under Regulation Z (the "Truth in Lending Act"):

1. the General QM Rule, which replaces the 43 percent limit on a consumer's debt-to-income ratio; and
2. the "Seasoned QM" Rule, which establishes a new QM category for transactions in which the loan (i) is secured by a first lien, (ii) has a fixed rate with payments that are fully amortizing and non-balloon, and (iii) has a term that does not exceed 30 years.