The Federal Housing Finance Agency announced that Fannie Mae and Freddie Mac will only purchase qualified loans, as defined by regulation passed this year. "Adoption of these new limitations by Fannie Mae and Freddie Mac is in keeping with FHFA's goal of gradually contracting their market footprint and protecting borrowers and taxpayers," according to the regulator's statement. Qualified-loan recipients are assumed to meet the newly established ability-to-repay requirement, giving the lender limited protection from future lawsuits.

Related Summaries