Originating

Consumer Watchdog Change Could Hamper Mortgages

America’s consumer watchdog agency has moved to end a regulatory provision that helped thousands of homebuyers receive a mortgage. So reports MarketWatch.

The Consumer Financial Protection Bureau said in January that it will permit the expiration of a temporary loophole called the “qualified mortgage patch” as planned, in January 2021, or soon afterward. The CFPB has begun soliciting public comments on a possible replacement.

Under this loophole, Fannie Mae and Freddie Mac have been able to buy loans with more than the 43% debt-to-income ratio that is standard under the Ability to Repay/Qualified Mortgage rule.

Read the full article from MarketWatch.

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