Term
Ability to Repay/QM
What act governs the ability to repay and what agency implemented them on what date
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Definition
Dodd Frank,
CFPB Implemented ATR/QM
Jan 10 2014 |
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Term
Ability to Repay/QM
What are lenders required to make when determining a borrowers ability to repay
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Definition
| reasonable good faith determination |
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Term
Ability to Repay/QM
What types of loans are not considered qualified mortgages
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Definition
HELOCs
Timeshares
Reverse Mortgages
Temp loans (<12mo)
Construction loans |
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Term
Ability to Repay/QM
When determining ability to repay what are three things that must be considered regarding income
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Definition
Current/reasonably expected income/assets
Employment Status,
Mortg payment,
pymts of other loans,
taxes/ins, debts(alimony, child support),
DTI/Residual income,
Credit history |
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Term
QM Qualified Mortgages
What are the characteristics of a QM
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Definition
Fully Amortized
30 years
Points/fees not to exceed 3%
DTI not more than 43% |
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Term
Ability to Repay/QM
When is a temporary waiver issued
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Definition
when loans are sold to FNM FLHMC or insured by FHA, VA or USDA
43% DTI waived. |
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Term
Ability to Repay/QM
What does the APR have to exceed in order to be considered a high priced morgage
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Definition
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Term
Ability to Repay/QM
What are the characteristics of a High Priced Mortgage appraisal
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Definition
Lender originated then a full int/ext.
if Acquired within 180 days of Application then additional appraisal required. |
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Term
Ability to Repay/QM
What tpyes of rate loans are prepayment penalties allowed and what are the restrictions based on years
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Definition
Only allowed on fixed rate/step rate.
NOT imposed after 3 years and
no greater than 2% first 2 yrs, 1% third yr |
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