The pandemic makes sense, but it may not be the real reason why the CFPB has delayed the mandatory compliance date for the QM standards drafted during the final days of the Trump administration.
After pushback from large nonbank servicers, state examiners will revise pro-posed regulatory standards. Eight large servicers catch a break on stringency.
Though the CFPB wants to allow lenders to continue to use the patch for another 18 months, the PSPA requires Fannie and Freddie to cease buying patch loans as of July 1.
States hope to finalize standards for nonbank servicers despite strong opposition from industry participants. Details are still being ironed out, and implementation remains a concern.
A number of groups representing lenders and consumer advocates said the CFPB should abandon an effort to extend the QM patch beyond July 1. The regulator also faces hurdles involving the GSEs and federal rulemaking requirements.