The Consumer Financial Protection Bureau (CFPB) recently amended the QM requirements of the Ability to Repay (ATR) rule, which generally requires a Seller to make a reasonable, good faith determination of a Borrower’s ability to repay before originating a Mortgage and establishes certain protections from liability for QMs. In consultation with the FHFA, Freddie Mac and Fannie Mae have worked together in an effort to align updated requirements in connection with the PSPA and Revised General QM Rule.
This Guide Bulletin updates our requirements in response to the PSPA and the Revised General QM Rule and specifies which Mortgages Freddie Mac will continue to purchase and under what conditions those Mortgages may be purchased. Specifically, this Guide Bulletin announces:
• Definitions related to the ATR/QM Rule
• Eligibility requirements for ATR Covered Mortgages and Exempt Mortgages
• Guide requirement updates in support of the ATR/QM Rule
• Negotiated provisions
• Reminders and additional updates