The Consumer Financial Protection Bureau has indefinitely extended a provision that allows loans sold to Fannie Mae and Freddie Mac to count as qualified mortgages as it reshapes the standards for those safer home loans.
The bureau issued a final rule Tuesday that does away with the Jan. 10 expiration date for the so-called “GSE patch,” which allows any mortgage sold to Fannie Mae or Freddie Mac for securitization purposes to be considered a qualified mortgage.
The CFPB’s 2013 qualified mortgage rule established a set of standards for safer home loans in which lenders would be protected from lawsuits should ...
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