NAR Letter to CFPB Regarding QM Extension and Review

On April 2 NAR sent a letter to Acting Director Uejio of the Consumer Financial Protection Bureau (CFPB). The letter provides comments in response to the CFPB’s notice of proposed rulemaking (NPRM) on Qualified Mortgage Definition under the Truth in Lending Act (Regulation Z): General QM Loan Definition; Delay of Mandatory Compliance Date. 

 

NAR appreciates the recent reassessment of the general QM rule and QM “patch” for the Government Sponsored Enterprises (GSEs or Enterprises) and the CFPB’s efforts to finalize a market-wide rule that brings a more wholistic approach rather than one that hinges on a limiting, single debt-to-income (DTI) rule. A steady and deliberate implementation of the new rule is best and should not be rushed in the current environment. Furthermore, REALTORS^® are concerned that the final rule has still not addressed several weaknesses that could result in higher and inconsistent costs for consumers, discrimination, and a weakening of safety and soundness. NAR welcomes the delay of implementation and supports additional review by the CFPB.