[Federal Register Volume 85, Number 186 (Thursday, September 24, 2020)]
[Proposed Rules]
[Pages 60096-60097]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-21152]
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BUREAU OF CONSUMER FINANCIAL PROTECTION
12 CFR Part 1026
[Docket No. CFPB-2020-0028]
RIN 3170-AA98
Qualified Mortgage Definition Under the Truth in Lending Act
(Regulation Z): Seasoned QM Loan Definition; Extension of Comment
Period
AGENCY: Bureau of Consumer Financial Protection.
ACTION: Notice of proposed rulemaking; extension of comment period.
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[[Page 60097]]
SUMMARY: On August 28, 2020, the Bureau of Consumer Financial
Protection (Bureau) published in the Federal Register a Notice of
Proposed Rulemaking (Seasoned QM Proposal) proposing to create a new
category of qualified mortgages in Regulation Z for first-lien, fixed-
rate covered transactions that have met certain performance
requirements over a 36-month seasoning period, are held in portfolio
until the end of the seasoning period, comply with general restrictions
on product features and points and fees, and meet certain underwriting
requirements. The 30-day comment period for the Seasoned QM Proposal is
counted from the date of publication, which was August 28. Thus, the
30-day comment period was set to close on September 28, 2020, which
this year is the date on which the Jewish holiday Yom Kippur falls. In
response to a request that we change the due date in light of the
holiday, the Bureau is extending the comment period for the Seasoned QM
Proposal until October 1, 2020.
DATES: The comment period for the Seasoned QM Proposal published August
28, 2020, at 85 FR 53568, is extended. Responses to the Seasoned QM
Proposal must now be received on or before October 1, 2020.
ADDRESSES: You may submit responsive information and other comments,
identified by Docket No. CFPB-2020-0028, by any of the following
methods:
Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the instructions for submitting comments.
Email: 2020-NPRM-SeasonedQM@cfpb.gov. Include Docket No.
CFPB-2020-0028 in the subject line of the message.
Mail/Hand Delivery/Courier: Comment Intake, Bureau of
Consumer Financial Protection, 1700 G Street NW, Washington, DC 20552.
Please note that due to circumstances associated with the COVID-19
pandemic, the Bureau discourages the submission of comments by mail,
hand delivery, or courier.
Instructions: The Bureau encourages the early submission
of comments. All submissions must include the document title and docket
number. Because paper mail in the Washington, DC area and at the Bureau
is subject to delay, and in light of difficulties associated with mail
and hand deliveries during the COVID-19 pandemic, commenters are
encouraged to submit comments electronically. In general, all comments
received will be posted without change to http://www.regulations.gov.
In addition, once the Bureau's headquarters reopens, comments will be
available for public inspection and copying at 1700 G Street NW,
Washington, DC 20552, on official business days between the hours of 10
a.m. and 5 p.m. Eastern Time. At that time, you can make an appointment
to inspect the documents by telephoning 202-435-9169.
All submissions in response to the Seasoned QM Proposal, including
attachments and other supporting materials, will become part of the
public record and subject to public disclosure. Please do not include
sensitive personal information in your submissions, such as account
numbers or Social Security numbers, or names of other individuals, or
other information that you would not ordinarily make public, such as
trade secrets or confidential commercial information. Submissions will
not be edited to remove any identifying or contact information, or
other information that you would not ordinarily make public. If you
wish to submit trade secret or confidential commercial information,
please contact the individuals listed in the FOR FURTHER INFORMATION
CONTACT section below. Information submitted to the Bureau will be
treated in accordance with the Bureau's Rule on the Disclosure of
Records and Information, 12 CFR part 1070 et seq.
FOR FURTHER INFORMATION CONTACT: For general inquiries and submission
process questions, please call Ruth Van Veldhuizen, Counsel, or Joan
Kayagil or Amanda Quester, Senior Counsels, Office of Regulations at
202-435-7700. If you require this document in an alternative electronic
format, please contact CFPB_Accessibility@cfpb.gov.
SUPPLEMENTARY INFORMATION: With certain exceptions, Regulation Z
requires creditors to make a reasonable, good faith determination of a
consumer's ability to repay any residential mortgage loan, and loans
that meet Regulation Z's requirements for QMs obtain certain
protections from liability. Regulation Z contains several categories of
QMs, including the General QM category and a temporary category
(Temporary GSE QM loans) of loans that are eligible for purchase or
guarantee by government-sponsored enterprises (GSEs) while they are
operating under the conservatorship or receivership of the Federal
Housing Finance Agency (FHFA). On August 18, 2020, the Bureau issued
the Seasoned QM Proposal to create a new category of QMs (Seasoned QMs)
for first-lien, fixed-rate covered transactions that have met certain
performance requirements over a 36-month seasoning period, are held in
portfolio until the end of the seasoning period, comply with general
restrictions on product features and points and fees, and meet certain
underwriting requirements. The Bureau's primary objective with the
Seasoned QM Proposal is to ensure access to responsible, affordable
mortgage credit by adding a Seasoned QM definition to the existing QM
definitions. The Seasoned QM Proposal was published in the Federal
Register on August 28, 2020.\1\
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\1\ 85 FR 53568 (Aug. 28, 2020).
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The Bureau provided for a 30-day comment period for the Seasoned QM
Proposal. The 30-day comment period is counted from the date of
publication, which was August 28. Thus, the 30-day public comment
period was set to close on September 28, 2020. Subsequent to the
issuance of the Seasoned QM Proposal, representatives from a consumer
group asked the Bureau to extend the deadline for submission of
comments because the originally established deadline of September 28,
2020 is the date this year of the Jewish holiday Yom Kippur. In
response to this request, the Bureau is extending the comment period
for the Seasoned QM Proposal to October 1, 2020.
Signing Authority
The Director of the Bureau, having reviewed and approved this
document, is delegating the authority to electronically sign this
document to Laura Galban, a Bureau Federal Register Liaison, for
purposes of publication in the Federal Register.
Dated: September 21, 2020.
Laura Galban,
Federal Register Liaison, Bureau of Consumer Financial Protection.
[FR Doc. 2020-21152 Filed 9-23-20; 8:45 am]
BILLING CODE 4810-AM-P