Ability-to-repay/QM rules updated in guide

(Feb. 26, 2021) Updates to the small-entity compliance guide on the ability-to-repay/qualified mortgage (QM) rule were also issued this week by the bureau, reflecting amendments to last year’s final rules to extend the government-sponsored enterprise (GSE) patch, or what the bureau now calls the “temporary GSE QM rule.”

The rule is used for loans that are eligible for purchase or guaranteed by Fannie Mae or Freddie Mac, creating a seasoned QM definition, and revising what is now called the general QM definition.

The bureau announced its compliance guide updates in an email that also included the statement regarding potential future action on the seasoned QM rule and revised general QM rule.

Ability-to-Repay and Qualified Mortgage Rule Small-Entity Compliance Guide, February 2021