Freddie and Fannie to Limit Loan Eligibility to New QM Rule

Fannie Mae, in Lender Letter LL-2021-09, and Freddie Mac, in Guide Bulletin 2021-13, announced that any loans purchased by the GSEs after July 1, 2021, must conform to the requirements outlined in the CFPB’s recently finalized QM final rule. Both GSEs clarified that they will continue to buy loans that fall under the "GSE patch" with application dates on or before June 30 and settlement dates before Sept. 1, and are purchased as whole loans before Sept. 1, or in mortgage-backed securities pools with an issue date on or before Aug. 1.