twitter linkedin
facebook google+
Search:

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News

 

Mortgage News

HOT Topics

production

servicing

compliance

legal

fraud

secondary

jobs

appraisal

site map

www.loan-academy.com/
Mortgage Compliance News | Mortgage Compliance Newsletter | Mortgage Regulations
News about complying with mortgage laws, rules and regulations.


Fannie Provides Additional Info on QM Requirements

Lender letter addresses upcoming changes

July 2, 2013

By Mortgage Daily staff

Fannie Mae issued a lender letter that provides more details about its requirements for the Qualified Mortgage and Ability-to-Repay rule.

The secondary lender, along with its government-controlled cousin Freddie Mac, were directed in May by their regulator, the Federal Housing Finance Agency, to limit future mortgage acquisitions to QMs.

At the time, Fannie issued Lender Letter LL-2013-05 outlining its QM policy -- though it plans to rely on representations and warranties that loans meet QM requirements.

The Washington, D.C.-based company issued Lender Letter LL-2013-06 on Tuesday providing additional information about the Ability-to-Repay and QM rule.

Fannie said that it will initially rely solely on lender selling representations and warranties that loans subject to the Ability-to-Repay rule are fully amortizing, have terms that are not greater than 30 years and don't exceed 3 percent in points and fees.

"Fannie Mae will continue to apply the representation and warranty principles established in selling guide announcement SEL-2012-08, new selling representations and warranties framework, provided that loans meet the payment history and other eligibility requirements of the framework, and meet the three new eligibility requirements if subject to the Ability-to-Repay rule," the letter stated.

A policy communication to be issued by Fannie next month will provide updates to the lender representations and warranties that address new eligibility requirements for loans subject to the Ability-to-Repay rule.

The August communication will also address policy changes related to loan eligibility for the new rule, which impacts loans with application dates on or after Jan. 10, 2014. In addition to loan terms, the interest-only prohibition and points and fees -- the changes will address changes to policies pertaining to loans with prepayment penalties and changes to policies related to loans that are exempt from the Ability-to-Repay rule.

Another policy communication planned for September will address how Fannie will test lender compliance with the three new eligibility requirements, including any related documentation or other requirements.

"Fannie Mae will phase-in quality control testing in early 2014 as part of the post-purchase file review process," the letter stated.


Related:
Fannie, Freddie to Only Buy QMs
The Federal National Mortgage Association and the Federal Home Loan Mortgage Corp. have been directed by their regulator-conservator to begin buying only loans that meet the definition of a qualified mortgage.

next story

back to current headlines


GSE News | Fannie/Freddie Share Statistics
Fannie, Freddie and FHLB news. Coverage of government sponsored enterprise regulation, operations and litigation.


Secondary Marketing News | Correspondent Lender Directory
Mortgage portfolio trades and forward commitments. Correspondent lending, r e p u r c h a s e s and warehouse news. Secondary marketing statistics and lawsuits.



Financial Regulation News | Mortgage Regulations
Bank and mortgage regulators, regulations and regulatory actions. Coverage of regulatory legislation and testimony.

www.mortgagebranchmanagerjobs.com
Logout forgot
password?

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter

MBS

mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders