Can a loan with a 3.5% points and fees be considered a QM?

Prepare for the Qualified and Non-Qualified Mortgage Test with comprehensive flashcards and multiple-choice questions. Ensure you understand every concept with detailed hints and explanations.

Multiple Choice

Can a loan with a 3.5% points and fees be considered a QM?

The main idea is that QM status often hinges on the points-and-fees cap, but there is an exemption for certain creditors. For most lenders, a general QM must have points and fees no higher than 3% of the loan amount. A loan with 3.5% in points and fees would not meet that standard. However, national banks (and other federally regulated depository institutions) can originate QM loans that do exceed the 3% cap and still qualify as QMs. So, a loan with 3.5% points and fees can be considered a QM if it’s originated by a national bank, whereas the same loan would not be a QM for other lenders.

The main idea is that QM status often hinges on the points-and-fees cap, but there is an exemption for certain creditors. For most lenders, a general QM must have points and fees no higher than 3% of the loan amount. A loan with 3.5% in points and fees would not meet that standard. However, national banks (and other federally regulated depository institutions) can originate QM loans that do exceed the 3% cap and still qualify as QMs. So, a loan with 3.5% points and fees can be considered a QM if it’s originated by a national bank, whereas the same loan would not be a QM for other lenders.

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