On April 27, the Consumer Financial Protection Bureau formally delayed the mandatory compliance date of the General Qualified Mortgage final rule
from July 1, 2021, to Oct. 1, 2022. The delay also extends the GSE QM expiration until Oct. 1, 2022. This final rule extends the General QM Final Rule’s mandatory compliance date, but it does not change the General QM Final Rule’s effective date of March 1, 2021. The CFPB also published an Executive Summary
covering the final rule.
For applications received on or after March 1, 2021, but before the mandatory compliance date of Oct. 1, 2022, creditors that seek to originate General QM loans have the option of complying with either the revised, price-based General QM loan definition or the original, total monthly debt-to-total monthly income based General QM loan definition. Only the revised, price-based General QM loan definition is available for applications received on or after the Oct. 1, 2022 mandatory compliance date.
Delaying the final rule’s compliance date also gives lenders more time to use the government-sponsored enterprise patch, which provides QM status to loans that are eligible for sale to Fannie Mae or Freddie Mac. However importantly, the CFPB noted the availability of the GSE Patch after July 1, 2021 may be limited by recent revisions to the Preferred Stock Purchase Agreements entered into by the Department of the Treasury and the Federal Housing Finance Agency, which oversees the conservatorship of Fannie Mae and Freddie Mac.