Posted To: MND NewsWire
Both Fannie Mae and Freddie Mac (the GSEs) have released information to their lenders confirming that any loans they purchase after July 1, 2021 must conform to the agreement made on their behalf in January by the Federal Housing Finance Agency (FHFA) with the Department of Treasury, amending the Preferred Stock Purchase Agreement (PSPA). Although there were several requirements in the amended PSPA designed to limit risk, last weeks letters were specifically concerned with the new qualified mortgage (QM) rule from the Consumer Financial Protection Bureau (CFPB). The revised PSPA specifically prohibits the GSEs from acquiring loans that do not meet this rule. This effectively ends the use of the temporary GSE qualified mortgage rule, better known at the “GSE Patch.” Under the patch, loans that…(read more)
