Under the conclusive presumption of compliance, which loans are presumed compliant with QM rules without additional assessment?

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Multiple Choice

Under the conclusive presumption of compliance, which loans are presumed compliant with QM rules without additional assessment?

Conclusive presumption of compliance applies to loans that qualify as Qualified Mortgages and meet the general QM standards, so no additional ability-to-repay assessment is needed. Prime loans that fit those standards are automatically presumed compliant because they typically have strong credit, stable income, and underwriting that avoids risky features (such as excessive fees, negative amortization, or terms longer than 30 years). The other options don’t fit because conforming status alone doesn’t guarantee QM compliance without checking the general QM criteria; subprime loans that aren’t QM have no presumption of compliance; and ARMs aren’t automatically conclusive unless they also meet the general QM requirements.

Conclusive presumption of compliance applies to loans that qualify as Qualified Mortgages and meet the general QM standards, so no additional ability-to-repay assessment is needed. Prime loans that fit those standards are automatically presumed compliant because they typically have strong credit, stable income, and underwriting that avoids risky features (such as excessive fees, negative amortization, or terms longer than 30 years).

The other options don’t fit because conforming status alone doesn’t guarantee QM compliance without checking the general QM criteria; subprime loans that aren’t QM have no presumption of compliance; and ARMs aren’t automatically conclusive unless they also meet the general QM requirements.

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