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The CFPB Wednesday released a notice of proposed rulemaking seeking to delay the mandatory compliance date of its general QM rule to Oct. 1, 2022. As proposed, the NAFCU-supported rule also gives lenders more time to utilize the government-sponsored enterprise (GSE) patch.  

“NAFCU thanks the CFPB for listening to our concerns and extending the compliance date for the general QM final rule. The extension will ensure homeowners continue to have access to mortgage credit during the pandemic and provide credit unions with additional time to comply,” said NAFCU Executive Vice President of Government Affairs and General Counsel Carrie Hunt. “The QM Patch has been a critical tool for credit unions as they assist their members, particularly those of low- and moderate-income, achieve homeownership and its extension is a benefit to all.”

NAFCU has previously met with representatives at the CFPB to discuss the patch, calling for a delay on the general QM definition and extension of the patch in the wake of the coronavirus pandemic, and has highlighted the benefits of the GSE patch in providing credit unions with the ability to sell their loans into the secondary market – generating "vital" liquidity enabling credit unions to make more loans to their members, especially those of low- or moderate-income. Additionally, NAFCU previously urged the CFPB to adopt an implementation period of at least 18 months.

In a release, the CFPB indicated that if the rule is finalized as proposed, the old debt-to-income (DTI)-based QM definition, the new QM definition, and the GSE patch – unless the GSEs exit conservatorship prior to Oct. 1, 2022 – would all remain available as long as the lender received the consumer's application prior to the compliance date.

“At a time when so many consumers are struggling and at risk of losing ground, particularly Black and Hispanic consumers, we need to do all we can to help people stay in their homes and to ensure the availability of responsible, affordable mortgages,” said CFPB Acting Director David Uejio. “In proposing to extend the date by which lenders must comply with the CFPB’s new General QM definition, we are working to provide needed options for both homeowners and lenders during a time of uncertainty and hardship.”

NAFCU will continue to work with the CFPB to ensure that credit unions are given enough time to prepare for the elimination of the GSE patch. Access Final regulation summaries on the QM final rules here and stay tuned for updates.