On October 20, 2020, the CFPB issued a final rule to extend the GSE Patch until the mandatory compliance date of a final rule amending the General QM loan definition. The GSE Patch was set to expire on January 10, 2021.
As covered in a prior WBK article, on June 22, 2020, the CFPB issued two Notices of Proposed Rulemaking targeted at replacing the General QM loan definition and the soon expiring Temporary GSE QM (commonly referred to as the “GSE Patch”). According to the CFPB’s press release, the CFPB is currently developing a final rule amending the General QM loan definition and is planning to issue it at a later date.
The CFPB did not amend the provision in Regulation Z that states that the GSE Patch will expire if Fannie Mae and Freddie Mac (the GSEs) exit conservatorship. The final rule will become effective 60 days after it is published in the Federal Register.