WASHINGTON—A coalition of 10 trade groups, including NAFCU, is urging CFPB Director Kathy Kraninger to delay the Bureau's rulemaking on the definition of qualified mortgage (QM) in the wake of the ongoing coronavirus pandemic.
The CFPB has previously indicated it will soon release a proposal to amend its qualified mortgage (QM) rule no later than May 2020.
“Releasing the notice of proposed rulemaking (NPR), or allowing the GSE patch to expire during this national emergency, would significantly impact the housing market and would threaten to further dislocate an already fragile housing market,” the letter reads.
The coalition, comprised of diverse housing finance stakeholders and organizations, also noted that industry participants would not be able to provide meaningful feedback to the Bureau should it proceed with the QM rulemaking at this time, given the unprecedented events surrounding the coronavirus national emergency.
In addition, the group suggested that the Bureau extend the temporary government-sponsored enterprise (GSE) QM patch until January 2022, or one year from finalization of any proposed rule following an appropriate notice and comment time period. The CFPB has indicated it has plans to let the GSE patch expire in 2021, with the possibility of a short-term extension to support the transition.