Truth In Lending (Reg Z) Qualified Mortgage Rule/Ability To Repay

In late May 2021, Fannie Mae and Freddie Mac (the “GSEs”) advised of their requirements and deadlines to implement the Consumer Financial Protection Bureau’s (CFPB’s) final rules under TILA/Reg Z’s Ability To Repay/Qualified Mortgage (ATM/QM) Rule, which was issued and finalized in January 2013 and again on December 10, 2020.

For the full rule see https://www.consumerfinance.gov/compliance/compliance-resources/mortgage-resources/ability-repay-qualified-mortgage-rule/.

All Mortgages originated and closed in accordance with the Agencies guidelines and the Temporary ATR/QM rule (known as the GSE Patch) are considered Qualified Mortgages for loan applications taken before July 1, 2021.

Whereas, for loan applications taken on or after July 1, 2021, Fannie Mae, Freddie Mac, and Elite Jumbo loans will no longer be permitted under the Temporary Qualified Mortgage rule (the GSE Patch) and must comply with the Revised Final General Qualified Mortgage Rule as required in the full bulletin.

Click below to read the entire bulletin. 

BNDC-003_ 6-21-21_ Reg Z QM Rule-Ability To Repay Requirements