CFPB issues updated ATR/QM guidance

February 23, 2021

The Consumer Financial Protection Bureau (CFPB) Tuesday issued updated Ability-to-Repay/Qualified Mortgage (ATR/QM) guidance. The CFPB is reconsidering whether to initiate a rulemaking to revisit the Seasoned QM rule, and it expects to issue a proposal shortly to delay the July 1 mandatory compliance date of the General QM final rule.

The Seasoned QM rule creates a new category of QMs, for first-lien, fixed-rate covered transactions that meet certain performance requirements over a 36-month seasoning period.

The General QM final rule replaces the current requirement for General QM loans that the consumer’s debt-to-income ratio (DTI) not exceed 43% with a limit based on the loan’s pricing.

CUNA generally supports both rules and wrote to CFPB Acting Director Dave Uejio shortly after his appointment calling for the QM rules to be implemented without delay.