[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: [email protected]. 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 [email protected].

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