XINNIX
Risky loan features - - negative amortization
- interest only payment feature
- loan terms in excess of 30 years
- prepayment penalties
- balloon mortgages
A _________ loan is one that has met the ATR requirements, and meets some additional rules that focus
on prohibiting risky loan features. - QM (qualifies mortgage)
for all QM loans, the points and fees charged to the borrower may not exceed ____% of the total loan
amount, unless the loan amount is $____________ or less - 3, 100,000
when is a QM loan considered higher priced - - first lien mortgage with an APR that exceeds the
average prime offer rate (APOR) by 1.5% points or more
- a subordinate lien mortgage with an APR that exceeds the APOR by 3.5% point or more
[when the interest rate was set]
ATR and QM rules do not apply to - - open ended credit plans
- HELOCS
- reverse mortgages
- temporary or bridge loans with the terms of 12 months or less
-constructions loan and construction-to-perm loans with terms 12 months or less
Monthly income expenses - taxes, insurance, home owners association dues
Risky loan features - - negative amortization
- interest only payment feature
- loan terms in excess of 30 years
- prepayment penalties
- balloon mortgages
A _________ loan is one that has met the ATR requirements, and meets some additional rules that focus
on prohibiting risky loan features. - QM (qualifies mortgage)
for all QM loans, the points and fees charged to the borrower may not exceed ____% of the total loan
amount, unless the loan amount is $____________ or less - 3, 100,000
when is a QM loan considered higher priced - - first lien mortgage with an APR that exceeds the
average prime offer rate (APOR) by 1.5% points or more
- a subordinate lien mortgage with an APR that exceeds the APOR by 3.5% point or more
[when the interest rate was set]
ATR and QM rules do not apply to - - open ended credit plans
- HELOCS
- reverse mortgages
- temporary or bridge loans with the terms of 12 months or less
-constructions loan and construction-to-perm loans with terms 12 months or less
Monthly income expenses - taxes, insurance, home owners association dues
