Is a portfolio lender still subject to QRM and ATR if the thresholds are exceeded? I don’t believe there is a safe harbor provision for loans in excess of 43% DTI, even portfolio lenders.

Just looked at FNMA new DU Notes, They are setting the DTI at 45% and I understand there is a big push to move CFPB ATR/QM to at least 45%. I have not seen anything of substance beyond that at this point.

If you underwrite to qualify under the (e)(4) QM (transition rule QMs) and the agency uses a 45% DTI, you can use that limit and still get QM status. The 43% limit only applies to (e)(2) QMs. Without QM status, there is neither a safe harbor nor a rebuttable presumption of compliance.

Agree with John Burnett. The GSE Agency QM is acceptable, even with DTI > 43%, provided you receive an FNMA DU Approve Eligible or FHLMC LP Approve, and the loan is eligible for sale to the GSE. It is not required the loan be sold, just eligible for sale.

Jumbo loans that are not GSE eligible would not have this QM option if the DTI is >43% and these are considered Non-QM, without any type of safe harbor.

Thanks