In the December 29, 2020 issue of the Federal Register (85 FR 86402), the Consumer Financial Protection Bureau (CFPB) published a final rule that creates a new category of qualified mortgages in §1026.43(e)(7) for first-lien, fixed-rate covered transactions that have met certain performance requirements, are held in portfolio by the originating creditor or first purchaser for a 36-month seasoning period, comply with general restrictions on product features and points and fees, and meet certain underwriting requirements, called a “Seasoned QM”.

The final rule is effective on March 1, 2021 and applies only to covered transactions for which creditors receive an application on or after March 1, 2021 (see preamble statement on page 86440 of the above hyperlinked section of the Federal Register.

Full Memorandum