Before qualifying for a Temporary QM, a loan must be deliverable to which entity?

To qualify for a Temporary Qualified Mortgage (QM), the loan must be deliverable to the government's secondary market. The government's secondary market includes entities like Fannie Mae, Freddie Mac, and Ginnie Mae, which play a crucial role in ensuring liquidity and stability in the mortgage market.

The eligibility of a loan for the Temporary QM category is contingent upon the loan being sold or securitized to these government-sponsored enterprises (GSEs). These entities have specific guidelines regarding the loans they will accept for purchase or securitization, which includes evaluating whether they meet the criteria of a Temporary QM.

By meeting these criteria and being deliverable to the government’s secondary market, the loan can benefit from certain consumer protections while also adhering to the necessary regulatory requirements. This fosters greater borrower confidence and helps lenders manage risk effectively.