CFPB Issues Two Final Rules to Promote Access to Responsible, Affordable Mortgage Credit

Orrick - Finance 20/20
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Orrick - Finance 20/20

On December 10, the Consumer Financial Protection Bureau (CFPB) issued two final rules related to qualified mortgage (QM) loans. The first final rule, the General QM Final Rule, replaces current requirements for measuring a consumer’s ability to repay General QM loans based on the consumer’s debt-to-income ratio, and instead adopts a price-based approached. The second final rule creates a new category called “Seasoned QMs” for first-lien, fixed-rate covered transactions that have met certain performance requirements, are held in portfolio by the originating creditor or first purchaser for a 36-month period, comply with general restrictions on product features and points and fees, and meet certain underwriting requirements. Release.

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