Lender's Guide to QM: Points and Fees
This summary addresses maximum points and fees as allowed under the QM rules. It also provides an overview of how United Guaranty products will be affected by the rules.
Maximum Points and Fees Allowed for QM Compliance
Code of Federal Regulations, Title 12—Effective 1/10/2014, §1026.43(e)(3)(i) provides that a transaction is not a qualified mortgage unless the total points and fees payable in connection with the loan do not exceed:
- For a loan amount greater than or equal to $100,000, 3% of the total loan amount;
- For a loan amount greater than or equal to 60,000 but less than $100,000, $3,000;
- For a loan amount greater than or equal to $20,000 but less than $60,000, 5% of the total loan amount;
- For a loan amount greater than or equal to $12,500 but less than $20,000, $1,000;
- For a loan amount of less than $12,500, 8% of the total loan amount.
The table that follows summarizes points and fees that are included and excluded, and provides a discussion of United Guaranty QMI products that are QM-friendly.
LEGAL DISCLAIMER: United Guaranty believes the information contained in this publication to be accurate as of January 10, 2014; however, this information is not intended to be legal advice and any person subject to these mortgage rules should seek advice from their legal counsel to assure proper compliance. United Guaranty is providing this information without any warranties, express or implied, and shall not be liable for any direct, indirect, incidental, punitive, or consequential damages due to any person's reliance on the information.