National Association of Realtors® President John Smaby issued the following statement after the CFPB yesterday announced its intent to allow the GSE Patch to expire in January 2021 while releasing its corresponding Advanced Notice of Proposed Rulemaking.
"On Thursday, members of NAR's policy staff, Joe Ventrone and Ken Fears, were briefed by Consumer Financial Protection Bureau Director Kathy Kraninger on the agency's review of the Qualified Mortgage Patch. During the meeting, NAR expressed its appreciation for the Bureau's work to proactively address the QM-patch issue, which will expire on January 10, 2021.
"The QM patch was intended as a temporary measure to prevent turmoil in the mortgage and real estate market as the CFPB implemented the Ability to Repay rule. Analysts estimate that as much as 30% of mortgages for home purchases fall into this market segment, and its disruption could result in higher costs and/or reduced access to mortgages for otherwise creditworthy homebuyers. This, in turn, could send ripples throughout the U.S. housing market.
"Going forward, NAR will continue to advocate for an extension of the patch and a permanent solution that will prevent disruption as we work with CFPB to secure stability in the housing market."