Fannie Mae Regulator Restricts Purchases to Qualified Mortgages
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Fannie Mae and Freddie Mac are being asked by their regulator to limit purchases to loans meeting qualified-mortgage requirements and those exempt from Dodd-Frank Act ability-to-repay rules.
The change announced today by the Federal Housing Finance Agency means that beginning Jan. 10 next year, the U.S.-owned companies won’t purchase interest-only mortgages, loans with 40-year terms or those with points and fees exceeding thresholds set by the Consumer Financial Protection Bureau.