Qualified Mortgages (QM)

PSPA Requirements and the Revised QM Rule

Under section 5.14 (c) of the amended PSPA, we are required to establish a program on or before July 1, 2021 that is reasonably designed to ensure that the loans we purchase are limited to those set forth in the amended PSPA, subject to certain exceptions that may be granted by the FHFA.

On April 8, 2021, in accordance with FHFA guidance, we announced requirements related to loans originated under the Consumer Financial Protection Bureau’s (“CFPB”) temporary GSE qualified mortgage (QM) rule (the “GSE Patch”) in Single-Family Seller/Servicer Guide Bulletin 2021-13 in order to provide the industry time to implement any necessary changes.

Updates in Response to the PSPA and the Revised General QM Rule

The 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 to align updated requirements in connection with the PSPA and Revised General QM Rule, which were announced on May 26, 2021.

Guide Bulletin 2021-19 specifies which mortgages Freddie Mac will continue to purchase and under what conditions those mortgages may be purchased.