Graduation Year


Date of Submission


Document Type

Open Access Senior Thesis

Degree Name

Bachelor of Arts



Reader 1

Eric Hughson

Rights Information

© 2019 Connor T Gaskin


This study analyzes the impacts of different announcements of the Qualified Mortgage GSE Patch expiration, set for January 10, 2021. The Qualified Mortgage GSE Patch was introduced in January 2014 to allow for the GSEs, Freddie Mac and Fannie Mae, to originate loans above the monthly Debt-to-Income ratio of 43 percent with the same protections as a Qualified Mortgage. To analyze these impacts, I measure the changes in the number of loans the GSEs obtain and weighted average home price before the announcement to after the announcement. In order to test for significance, I use a five- year benchmark period to compare against these announcement periods, conducting Student t-tests and difference in differences tests. The results of this study show that there were some significant positive changes in home price after an announcement period; however, there were no significant positive changes in the number of GSE loans. The results highlight that although both loan count and home prices were increasing in the announcement periods, there is a lack of significance in the short-term announcement periods.

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