The CFPB has finalized the delay of the mandatory compliance date for the “new” general Qualified Mortgage (QM) definition. As a result, both the “new” and “original” versions of the general QM will be available for applications received on or after March 1, 2021, but before October 1, 2022. This also means the temporary QM category for loans eligible for purchase or guarantee by Fannie Mae or Freddie Mac will remain available for applications received before October 1, 2022.
This Rule, however, does not change the fact that Fannie and Freddie will only purchase those loans that meet the “new” general QM definition, effective for applications received on or after July 1, 2021. Jerod explains more here.
Do you understand the differences between the “new” and “revised” general QM definitions? Most notably, the “new” QM definition replaces Appendix Q and the 43% debt limit with pricing thresholds.
Jerod is the leader of Banker’s Compliance Consulting’s training productions. He is a nationally recognized speaker. Whether it’s a conference, seminar, school, webinar, or luncheon, it’s easy to stay engaged when he presents due to the amount of passion and energy he brings to each and every compliance topic. Jerod has spoken on behalf of the American Bankers’ Association, BankersOnline, many state banking associations, private compliance groups, and financial institutions. He is a Certified Regulatory Compliance Manager (CRCM) and BankersOnline Guru.
Jerod likes to spend his time (between reading regulations and producing compliance training!) relaxing at the lake with his wife and three children, following their activities or engaged in something sports related!