(6) The underwriting takes into account the monthly payment for mortgage-related obligations, using
both the maximum interest rate that may apply during the first five years, and the periodic loan payments of principal and interest that will repay the loan amount over the scheduled loan term or, for adjustable rate loans, the outstanding principal balance over the remaining term of the loan as of the date the interest rate adjusts to the maximum interest rate, assuming the consumer will have made all required payments as due prior to that date.
Agency Loans Remain As Covered Transactions
Loans that qualify for federally insured or guaranteed FHA, VA and USDA/RHS mortgage loan programs will remain as covered transactions under the General QM Final Rule.
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On December 10, 2020, the CFPB released two separate final rules: the first, redefining the General Qualified Mortgage requirements (General QM Rule); and the second, establishing requirements for a new Seasoned QM loan (Seasoned QM Rule). Both rules will become effective 60 days after they are published in the Federal Register, expected shortly. Another recent final rule provides that the so-called “Temporary GSE Patch QM” will expire on the mandatory effective date of the General QM Rule which is July 1, 2021, or the date the GSEs exit conservatorship, if earlier than July 1.