Yesterday, Fannie and Freddie issued Lender Letters clarifying that they won't be buying any QM loans under the GSE Patch after July 1, as stipulated by their amended PSPAs with Treasury.
That's a big deal, of course, because on March 4 the CFPB proposed delaying the implementation of the final QM rule until Oct. 1, 2022, blowing way past the July 1 deadline for ending the GSE Patch workaround.
Shortly after CFPB announced their proposal, Dave Stevens wrote an article for HousingWire saying it was "a terrible move." He noted that the delay would only "thrust uncertainty and disruption into housing finance, completely unnecessarily."
That certainly seems to be the case, as lenders now have to wonder if they should be adhering to the July 1 deadline or if the CFPB will pull a rabbit out of its hat and push the deadline to 2022.
This is no small matter, and, as the Housing Policy Council pointed out in itscomment letter to the CFPB on the proposal, the Bureau doesn't provide data that backs up its claims that consumers would benefit from delaying the final rule.
The very short comment period on the proposed rulemaking closed April 5 so the bureau will have to decide quickly what route it will take so lenders can know how to handle those loans. We'll be keeping a close eye on it.
Kristy Fercho, head of home lending at Wells Fargo and chairman elect of the Mortgage Bankers Association, talks about how Wells Fargo is helping borrowers during COVID-19, the effect of forbearance exits on the housing market, and why she's optimistic about the big bank model.
Despite the CFPB's notice of proposed rulemaking to extend the QM Patch, the GSE's sent a letter to lenders stating for now they plan to follow the original expiration.
The updated URLA brings new complexities for quality control professionals, and now is the time to learn and ensure you stay compliant. Find out from industry experts how these changes impact your QC team and how you can ensure audit readiness. Learn more!
As call volumes have spiked to a level not seen since last April, lenders and servicers need to prepare for a significant increase in their workload as they help borrowers through difficult times. Presented by Computershare Loan Services
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