Qualified Mortgage Definition under the Truth in Lending Act (Regulation Z)

Qualified Mortgage Definition under the Truth in Lending Act (Regulation Z)
Subject: Qualified mortgage
Agency: CFPB
Status: ANPR
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. The Bureau 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.
FR Doc: 2019-16298
Date proposed: July 25, 2019
Comments due date:

Sept. 16, 2019

Final rule effective date:
Rule compliance date:
Agency release:

Consumer Financial Protection Bureau Releases Qualified Mortgage ANPR

Related Reg Report item(s):

Bureau eyes whether to revise Reg Z ‘qualified mortgage’ factors, including DTI, as GSE patch nears expiration