More Proposed Rulemaking News from CFPB

Wednesday, the CFPB issued an advance notice of proposed rulemaking for Qualified Mortgage Definition Under the Truth in Lending Act (Regulation Z).  With certain exceptions, Regulation Z requires creditors to make a reasonable, good faith determination of a consumer's ability to repay any residential mortgage loan, and loans that meet Regulation Z's requirements for “qualified mortgages” obtain certain protections from liability. One category of qualified mortgages (QMs) is loans that are eligible for purchase or guarantee by either the Federal National Mortgage Association (Fannie Mae) or the Federal Home Loan Mortgage Corporation (Freddie Mac).

Under Regulation Z, this category of QMs (Temporary GSE QM loans) is scheduled to expire no later than January 10, 2021. The Bureau currently plans to allow the Temporary GSE QM loan category to expire in January 2021 or after a short extension, if necessary, to facilitate a smooth and orderly transition away from the Temporary GSE QM loan category.

With this ANPR, CFPB is considering whether to propose revisions to Regulation Z's general qualified mortgage definition in light of that planned expiration and is issuing this ANPR to request information about possible revisions.

Comments must be received on or before September 16, 2019.  Click here for information about the ANPR and to submit comments.

Need help putting your arms around new regulation or writing a comment letter?  Click here! NJCUL is here to help.