The Consumer Financial Protection Bureau (“CFPB”) recently issued two final rules aimed at bolstering the Qualified Mortgage (“QMs”) market. The first final rule amends the general eligibility category of QMs (“General QMs”) under regulation Z to eliminate the debt-to-monthly-income (“DTI”) ratio requirement in favor of a price-based model. The second final rule adds an additional category of QMs, the Seasoned QM. Both final rules will become effective within 60-days of being entered into the Federal Register. The General QM rule will have a mandatory compliance date of July 1, 2021.
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