The CFPB  announced today that it expects to propose a rule to delay the July 1, 2021 date to comply with the new Qualified Mortgage ("QM") rule.

The CFPB's  statement provides that the extension would allow lenders more time to make QM loans based on their debt-to-income ratio (and Appendix Q), or based on the fact that they are eligible for purchase by Fannie Mae or Freddie Mac. The CFPB's goal is to "ensure consumers have the options they need during the pandemic and the financial crisis it has caused, as well as to provide maximum flexibility to the market."

The  statement also is scheduled to appear in the Federal Register on February 26th.

Even more changes could be on the horizon. In addition to the possible delay described above, the CFPB hinted that it may revisit the  Seasoned QM Final Rule, and that it will "consider at a later date" whether to initiate another rulemaking to reconsider other aspects of the  General QM Rule.

One thing the CFPB did not mention in today's statements is whether it intends to postpone the availability, scheduled for March 1, 2021, of the new General QM category, which targets loans below a certain annual percentage rate threshold.

Visit us at

Mayer Brown is a global legal services provider comprising legal practices that are separate entities (the "Mayer Brown Practices"). The Mayer Brown Practices are: Mayer Brown LLP and Mayer Brown Europe – Brussels LLP, both limited liability partnerships established in Illinois USA; Mayer Brown International LLP, a limited liability partnership incorporated in England and Wales (authorized and regulated by the Solicitors Regulation Authority and registered in England and Wales number OC 303359); Mayer Brown, a SELAS established in France; Mayer Brown JSM, a Hong Kong partnership and its associated entities in Asia; and Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. "Mayer Brown" and the Mayer Brown logo are the trademarks of the Mayer Brown Practices in their respective jurisdictions.

© Copyright 2020. The Mayer Brown Practices. All rights reserved.

This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.