CFPB Issues Final Rule Extending the GSE Patch

On October 20, the CFPB issued a final rule extending the GSE Patch until the mandatory compliance date of a final rule amending the General Qualified Mortgage (QM) loan definition in Regulation Z. The GSE Patch was scheduled to expire on January 10, 2021. The CFPB did not amend the provision in Regulation Z stating that the GSE Patch will expire if the GSEs (Fannie Mae and Freddie Mac) exit conservatorship.

The CFPB issued a proposal to amend the General QM loan definition on June 22, 2020, the same day it issued a proposal to extend the GSE Patch. The CFPB is currently developing a final rule amending the General QM loan definition and is planning to issue it at a later date.