QM & HOEPA Review

Question 1

Safe Harbor QM

Answer 1

-APR < APOR + % 1st lien & < 3.5% 2nd lien
-APR > APOR +1.5% but < 2.25% = HPML 1st lien

Question 2

Rebuttable Presumption QM

Answer 2

-APR < APOR + 2.25% but < 6.5% 1st lien = HPML
-APR > APOR + 3.5% 2nd lien & < $50K loan but < 8.5%

Question 3

HPML (QM)

Answer 3

-APR > APOR + 1.5% but < 6.5% 1st lien
-Safe Harbor Overlap > 1.5% < 2.25%
-APR> APOR + 3.5% but < 8.5% (2nd)

Question 4

Types of QM’s

Answer 4

-General QM
-Temporary QM
-Balloon QM
-Small Creditor
-Price-Based QM
-Seasoned QM

Question 5

General QM

Answer 5

43% DTI (changed in 2021

Question 6

Temporary QM

Answer 6

AUS Approved DTI (Expired Jan 10, 2021)

Question 7

Balloon QM

Answer 7

Allows certain lenders to do balloon loans

Question 8

Small Creditor

Answer 8

Allows certain lenders a higher DTI

Question 9

Price Based QM & Seasoned QM

Answer 9

New catagories for 2021