The CFPB is planning to remove the QM Patch that allows loans guaranteed by Fannie Mae and Freddie Mac an exemption from meeting some of the underwriting requirements set forth in the Ability to Repay/Qualified Mortgage rule. The expiration date is set for January 2021, but many think this is not enough time to adjust.
The most notable impact to the GSEs is the 43 debt-to-income (DITI) requirement. The patch allows the GSEs to exceed the 43 DTI requirement but still qualify for safe harbor. For instance, Fannie Mae currently allows up to 50% DTI for many of their products.