Prior to its expiration in October 2022, loans eligible for purchase by Fannie Mae or Freddie Mac could automatically qualify under which Qualified Mortgage category, even if the borrower's DTI exceeded 43%?

Correct answer: GSE Patch QM (Temporary QM)

The GSE Patch (also called the 'Temporary QM' or 'Agency QM') was a provision under the ATR/QM rule that allowed loans eligible for purchase by Fannie Mae or Freddie Mac to automatically qualify as QMs, even if the borrower's DTI exceeded the 43% threshold required under the original General QM standard. This provision expired on October 1, 2022, when the revised General QM rule — which uses an APR-to-APOR comparison rather than a DTI cap — became the operative standard. The General QM requires meeting specific pricing thresholds relative to APOR. The Small Creditor QM applies to qualifying smaller lenders. Balloon Payment QMs are limited to small creditors in rural or underserved areas.