In the December 29, 2020 issue of the Federal Register (85 FR 86308, click here) the Bureau  of Consumer Financial Protection (Bureau) published a final rule that amends the General Qualified Mortgage Loan definition in §1026.43(e)(2) of Regulation Z (General QM Loan) by removing the General QM Loan definition’s 43 percent total monthly debt to total monthly income ratio (DTI Limit) in paragraph (e)(2)(vi) and replacing it with price-based thresholds. The final rule also removes from paragraph (e)(2)(v) the requirement to use appendix Q in verifying the consumer’s current or reasonably expected income or assets (subparagraph (e)(2)(v)(A)) and the consumer’s current debt obligations, alimony, and child support  (subparagraph (e)(2)(v)(B)).

The final rule is effective on March 1, 2021. However, the mandatory compliance date is July 1, 2021.

Full Memorandum