The CFPB's latest regulatory agenda lays out its priorities for next year, including action on the qualified mortgage "patch" and changes to the residential data reporting rule.
Congress is mulling legislation that would allow lenders to rely on technical standards other than Appendix Q to determine a borrower’s debt-to-income ratio under the ability-to-repay rule. The move is aimed at mitigating the risk from the expiration of the qualified-mortgage patch.
The Federal Housing Finance Agency directed Fannie Mae and Freddie Mac to provide assistance toward the development of new qualified mortgage standards.
CFPB Director Kathy Kraninger was grilled by Democratic lawmakers regarding enforcement actions during hearings on Capitol Hill. Other topics such as fair lending, innovation policies and qualified-mortgage patch were also on the agenda.
A coalition of the nation’s largest lenders, trade groups and consumer advocacy groups have suggested the elimination of the DTI ratio cap and the associated Appendix Q. However, the MBA and Democratic lawmakers have urged the bureau to tread cautiously.
The Treasury Department in its housing-finance reform plan has asked the CFPB to end the qualified mortgage “patch” as scheduled and establish a bright-line rule in its place.
With the qualified mortgage “patch” scheduled to sunset in 2021, lenders are pushing for changes to the Appendix Q documentation requirements amid a broader debate over the debt-to-income limit.
The third meeting this year between officials of the CFPB and the CMLA focused on the loan originator compensation rule. The trade group noted that bureau Director Kathy Kraninger is open to industry feedback.
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