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B-332652 Nov 25, 2020 1 (2020-11-25)

handle is hein.gao/gaoljg0001 and id is 1 raw text is: U.S. GOVERNMENT ACCOUNTABILITY OFFICE 441 G St. N.W. Washington, DC 20548 B-332652 November 25, 2020 The Honorable Mike Crapo Chairman The Honorable Sherrod Brown Ranking Member Committee on Banking, Housing, and Urban Affairs United States Senate The Honorable Maxine Waters Chairwoman The Honorable Patrick McHenry Ranking Member Committee on Financial Services House of Representatives Subject: Bureau of Consumer Financial Protection: Qualified Mortgage Definition Under the Truth in Lending Act (Regulation Z): Extension of Sunset Date Pursuant to section 801(a)(2)(A) of title 5, United States Code, this is our amended1 report on a major rule promulgated by the Bureau of Consumer Financial Protection (the Bureau) entitled Qualified Mortgage Definition Under the Truth in Lending Act (Regulation Z): Extension of Sunset Date (CFPB-2020-0021). We received the rule on October 20, 2020. It was published in the Federal Register as a final rule; official interpretation on October 26, 2020. 85 Fed. Reg. 67938. The effective date of the rule is December 28, 2020. According to the Bureau, this final rule amends Regulation Z, which, according to the Bureau, requires, with certain exceptions, creditors to make a reasonable, good faith determination of a consumer's ability to repay any residential mortgage loan. The Bureau stated that loans that meet Regulation Z's requirements for qualified mortgages (QMs) obtain certain protections from liability. The Bureau explained that one category of QMs consists of loans that are eligible for purchase or guarantee by either the Federal National Mortgage Association (Fannie Mae) or the Federal Home Loan Mortgage Corporation (Freddie Mac) (collectively, government-sponsored enterprises, or GSEs), while operating under the conservatorship of receivership of the Federal Housing Finance Agency (FHFA). The Bureau further explained that the GSEs are currently under federal conservatorship. According to the Bureau, in 2013 it established this category of QMs (Temporary GSE QM loans) as a temporary measure that would expire with respect to each GSE on the date that GSE exits conservatorship, or on January 10, 2021, whichever comes first. 1 Upon receipt of documentation from the agency, as discussed further in this report, we are issuing this amended report to revise a statement in the original report, dated November 12, 2020, that the Bureau did not comply with the 60-day delay in effective date requirement of 5 U.S.C. § 801(a)(3)(A).

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