Archive: 11 June 2013

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Fannie Mae and Freddie Mac to Restrict Purchases to Qualified Mortgages – The Future for Non-QM Loans Remains Unclear

Fannie Mae and Freddie Mac to Restrict Purchases to Qualified Mortgages – The Future for Non-QM Loans Remains Unclear

By: Kristie D. Kully , Andrew L. Caplan

On May 6, 2013, the FHFA, the regulator (and conservator) of Fannie Mae and Freddie Mac (the “GSEs”), directed the GSEs to limit their mortgage acquisitions to Qualified Mortgages (or loans that are otherwise exempt from the CFPB’s Ability to Repay Rule), effective January 10, 2014. This FHFA Directive (the “Directive”) will ensure that the GSEs only purchase loans that are fully amortizing, have a term of 30 years or less, and have points and fees limited to 3% of the total loan amount (and meet all the other QM criteria). Read More

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