You know a lot! Just a quick reminder, in January 2014 the CFPB (now BCFP) came out with the QM/ATR Rule, or Qualified Mortgage with Ability to Repay requirements, which take in things like DTI, LTV, credit, and the higher indexed payment if an ARM.
IF all things remain equal and a home goes into foreclosure then the loan didn't meet the ATR criteria and the lender can be on the hook with no legal rebuttable presumption if taken to court.
Qualified Mortgage criteria is calculated in the background of loan origination software. Hit a button and it tells you if you have a QM loan or not.
The rule does not apply to HELOCS or HECMS. |
