QM vs Non-QM Pricing

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How are lenders that do QM and Non-QM loans supposed to price/lock a loan up-front? What if the loan appears to be a QM loan but once further information is verified it is determined that the loan is Non-QM but still within the lender guidelines for approval?


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There is typically not a loan that “appears” most loans assuming non-jumbo will be ran through AUS. So it will be placed into one of the four following loan designations.

1.) Temp QM 2.) General QM 3.) Non-QM 4.) High Priced Qualified Mortgage (HPQM)

There is no appearing in DU 9.0 its one of the above.

Here is the fun part…

The Points & Fees cap is dependent on the size of the loan. The new standards are: 3% of the total loan amount for a loan greater than or equal to $100,000 $3,000 for a loan greater than or equal to $60,000 but less than $100,000 5% of the total loan amount for a loan greater than or equal to $20,000 but less than $60,000 $1,000 for a loan greater than or equal to $12,500 but less than $20,000 8% of the total loan amount for a loan less than $12,500

Answered 7 months ago

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