Freddie Mac recently issued Bulletin 2021-13 Discusses updates in response to the revised General Qualified Mortgage (QM) rule. The bulletin clarifies that under the amended preferred stock purchase agreement (the amended PSPA) that Freddie Mac entered into with the Treasury Department through the FHFA as a curator, Freddie Mac can no longer purchase QMs under the GSE patch for mortgages with applications, received on or after July 1, 2021, and all mortgages with settlement dates after August 31, 2021.
The bulletin declares that as of the dates listed above, all loans that are subject to the revised QM rule and that have arisen on the basis of the GSE patch are not eligible for sale to Freddie Mac unless the loan complies with general QM -Definition according to the revised QM rule and continues to meet the other requirements of Freddie Mac in the seller’s manual. Mortgages created using the original general QM definition in Appendix Q are not eligible.
The bulletin also clarified that under the amended PSPA, certain government funded, guaranteed, or insured mortgages could still be sold to Freddie Mac, namely: Section 502 GRH Mortgages, Section 184 Native American Mortgages, and FHA / VA Mortgages.
Freddie Mac stated that the guidance was provided to allow the industry time to implement any required changes and that they will continue to work with the FHFA and Fannie Mae to assess other impacts that the amended PSPA and revised QM will have -Rule on it might have requirements and processes.
WBK’s coverage of the relevant changes to Fannie Mae’s eligibility requirements can be found Here. WBK’s prior reporting on the Treasury and FHFA agreements to change the PSPA between the Treasury and each of the GSEs is available Here. WBK’s earlier reporting on the revised general QM rule of the CFPB can be found Here and Here.