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CFPB Proposal Would Allow Safe Mortgage Mix During Pandemic

March 3, 2021, 9:15 PM

The Consumer Financial Protection Bureau wants to give lenders an extra 16 months before they have to comply with new safe mortgage standards, citing concerns about the pandemic.

A proposalissued Wednesday would allow mortgage lenders to offer home loans under the CFPB’s old qualified mortgage standard—including the so-called GSE patch that allows all mortgages sold to Fannie Mae or Freddie Mac to qualify under the rules—until Oct. 1, 2022.

The existing QM standard relies on a 43% borrower debt-to-income (DTI) ratio to determine whether a loan is safe and affordable.

The CFPB under former Director Kathy Kraninger finalized a ...

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