CFPB Delays Mandatory Compliance Date for General QM Rule

Housing Finance
Published

The Consumer Financial Protection Bureau (CFPB)  has formally delayed the mandatory compliance date of the General Qualified Mortgage (QM) final rule from July 1, 2021, to Oct. 1, 2022.

The agency said in a press release that it is taking this action “to help ensure access to responsible, affordable mortgage credit, and preserve flexibility for consumers affected by the COVID-19 pandemic and its economic effects.”

The General QM final rule would replace the current requirement for General QM loans that the consumer’s debt-to-income ratio (DTI) not exceed 43%, with a limit based on the loan’s pricing.

In adopting a price-based approach to replace the specific DTI limit for General QM loans, the CFPB determined that a loan’s price is a strong indicator of a consumer’s ability to repay and is a more holistic and flexible measure of a consumer’s ability to repay than DTI alone. A loan meets the general QM definition if its annual percentage rate exceeds the average prime offer rate (APOR) for a comparable transaction by less than 2.25 percentage points.

In addition, the General QM final rule:

  • Provides higher pricing thresholds for loans with smaller loan amounts, for certain manufactured housing loans, and for subordinate-lien transactions.
  • Retains the General QM loan definition’s existing product-feature and underwriting requirements and limits on points and fees.
  • Requires lenders to consider a consumer’s DTI ratio or residual income, income or assets other than the value of the dwelling, and debts, and removes appendix Q and provides more flexible options for creditors to verify the consumer’s income or assets other than the value of the dwelling and the consumer’s debts for QM loans.

QM loans are presumed to be made based on the lender’s reasonable determination of the home owner’s ability to repay the loan.

Read the final rule.

Read an executive summary of the final rule.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Labor

Sep 04, 2025

Open Construction Jobs Rise in July

Running counter to the national trend, the number of open construction sector jobs increased from a revised 242,000 level in June to 306,000 in July.

Sponsored Content

Sep 03, 2025

Project Funding Crisis: How Top Builders Secure Money When Others Can't

Relying solely on a traditional lender is risky in today’s environment. Smart builders line up more than one source of funding. That way, projects stay on track, crews keep working, and reputations stay solid.

View all

Latest Economic News

Economics

Sep 03, 2025

Open Construction Jobs Rise in July

The count of open, unfilled positions in the construction industry increased in July, per the June Bureau of Labor Statistics Job Openings and Labor Turnover Survey (JOLTS) as the national labor market cooled.

Economics

Sep 03, 2025

House Price Appreciation by State and Metro Area: Second Quarter 2025

House price growth continued to slow in the second quarter of 2025, as the housing market faces mounting pressure from high mortgage rates, elevated inventory, and persistent economic uncertainty.

Economics

Sep 02, 2025

June Private Residential Construction Spending Edges Higher

Private residential construction spending inched up 0.1% in June, registering the first monthly gain after six consecutive declines.