The Department of Housing and Urban Development on Monday issued its own proposed rule defining what constitutes a "qualified mortgage," that has two exceptions to the existing QM rule finalized earlier this year by the Consumer Financial Protection Bureau.

To receive QM status, a loan must require periodic payments, have terms that do not exceed 30 years, and limit upfront points and fees to no more than 3%. Those requirements are "consistent with the private sector and conventional mortgages guaranteed by Fannie Mae and Freddie Mac," HUD said in a press release.

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