Tag Archives: Mortgage Giants to Limit Loan Purchases to ‘Qualified Mortgages’

Mortgage giants Fannie Mae and Freddie Mac will begin next year to  purchase only loans that meet new “qualified mortgage” requirements, the Federal Housing Finance Agency announced Monday. In January, the Consumer Financial Protection Bureau finalized new rules that would require lenders to verify borrowers’ ability to repay their loans. It capped loan terms and fees and the bureau said that qualified mortgages are borrowers whose debt does not exceed 43 percent of their income. The requirements are to go into effect January 2014. “Adoption of these new limitations by […]