While the Treasury and FHFA said the 7% cap was “aligned with the current levels” of acquisitions by the GSEs, some analysts believe the loans have accounted for somewhat more than 7% of purchases by Fannie and Freddie each year since 2013.
The longer timeline allows lenders more time to offer QM loans based on a homeowner’s debt-to-income ratio and not solely based on certain pricing thresholds...