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

Economics

Nov 24, 2025

Which Home Features Add the Most Value?

The latest American Housing Survey revealed details about how influential bathrooms, bedrooms, the age of homes and other features are to a home's value.

Safety | Advocacy

Nov 21, 2025

Bill Would Repeal Biden-Era OSHA Heat Standard

Rep. Mark Messmer (R-Ind.) has introduced legislation that would repeal the Biden administration’s proposed OSHA rule on heat injury prevention in the workforce which would impose impracticable requirements on residential construction employers.

View all

Latest Economic News

Economics

Nov 20, 2025

September Jobs Report Highlights a Cooling but Still Growing Labor Market

The long-delayed September jobs report revealed that the U.S. economy added 119,000 jobs while the unemployment rate climbed to its highest level in nearly four years.

Economics

Nov 20, 2025

Existing Home Sales Rise in October

Existing home sales rose to an eight-month high in October as buyers took advantage of lower mortgage rates, according to the National Association of Realtors (NAR). Resale inventory improved from a year ago but remained below pre-pandemic levels.

Economics

Nov 19, 2025

Affordability Impacts: Young Adults Are Once Again Moving Back Home

The share of young adults living with parents increased in 2024, interrupting the post-pandemic trend of moving out of parental homes.