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CFPB Seeks Feedback on QM Patch Ahead of 2021 Expiration

The bureau issued an advance notice of proposed rulemaking seeking feedback on the upcoming expiration of the temporary “GSE patch,” which grants Qualified Mortgage status to loans eligible to be purchased or guaranteed by Fannie Mae or Freddie Mac. The bureau noted that it is currently planning to allow the GSE patch to expire as scheduled in January 2021, “or after a short extension.” The bureau is seeking comments on possible changes to the ability-to-repay rule, including whether to revise the definition of a Qualified Mortgage. For more information, contact ABA's Rod Alba.