Inventory
info icon
Single family homes on the market. Updated weekly.Powered by Altos Research
735,718-296
30-yr Fixed Rate30-yr Fixed
info icon
30-Yr. Fixed Conforming. Updated hourly during market hours.
6.94%0.02
InvestmentsMortgageRegulatory

Calabria on the QM patch: Fannie, Freddie should be held to same standards as everyone else

Supports CFPB move to kill QM patch

Federal Housing Finance Agency Director Mark Calabria told HousingWire this week that he supports the Consumer Financial Protection Bureau’s move to kill the Qualified Mortgage patch.

“My view ultimately is that Fannie and Freddie should play by the same set of rules as everybody else,” Calabria told HousingWire in an exclusive interview. “We’re working with the CFPB, my hope is that we can have the patch expire and that we fix the underlying QM.”

A rule that allows government-sponsored enterprises Fannie Mae and Freddie Mac to sidestep stricter mortgage underwriting requirements is set to expire in 2021, and while that may seem like a ways away, its pending removal has sparked widespread debate throughout the industry.

Known as the QM patch, the rule exempts GSE-backed loans from abiding by the full scope of the Ability to Repay/Qualified Mortgage rule, which requires lenders to adequately verify a borrower’s ability to repay their mortgage in the underwriting process.

Calabria told HousingWire Magazine in a recent exclusive set to be released in September that any moves made by the CFPB should include a fix to the QM rule.

“I see the patch as an implicit admission that the QM is flawed,” he said. “That suggests to me that the solution is to fix the QM, not to continue to allow exemptions from it.”

Calabria also expressed his thoughts on Twitter after the CFPB announced its intention to let the patch expire, saying this would create a more level playing field.

Most Popular Articles

Latest Articles

Lower mortgage rates attracting more homebuyers 

An often misguided premise I see on social media is that lower mortgage rates are doing nothing for housing demand. That’s ok — very few people are looking at the data without an agenda. However, the point of this tracker is to show you evidence that lower rates have already changed housing data. So, let’s […]

3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please