Freddie Mac issued Bulletin 2021-19, announcing additional updates with respect to the revised General QM Rule. Per the Bulletin, Freddie Mac updated requirements in response to the Senior Preferred Stock Purchase Agreement and the revised General QM Rule, and specified which mortgages Freddie Mac will continue to purchase and under what conditions those mortgages may be purchased. The updated requirements include:
Freddie Mac also announced that the requirements of the Bulletin (and any related future updates) supersede purchase documents that contain one or more negotiated provisions with terms that are inconsistent with the requirements of the Bulletin.
In addition, Freddie Mac:
- Paused the purchase of Enhanced Relief Refinance Mortgages until further notice; and
- Revised the first interest change date for 5/6-month SOFR ARMs to 55 to 66 months (previously 54 to 66 months).
The revisions announced in the Bulletin are effective for mortgages that have application received dates on or after July 1, 2021, and all mortgages with settlement dates after August 31, 2021. In addition, ATR Covered Mortgages that have application received dates prior to March 1, 2021 and were originated using the GSE Patch requirements must also meet the revised general QM Rule if they have settlement dates after August 31, 2021.
Click to view the Freddie Mac Bulletin 2021-19: https://www.tenaco.com/wp-content/uploads/2021/06/Freddie-Mac-Guide-Bulletin-2021-19-05-26-21.pdf
