I am working through the figures for our wholesale channel and figuring the maximum amount of lender paid compensation we can pay brokers and remain under the 3% QM points and fees cap. A few months ago we came to the conclusion that it appears that rate lock extension fees would need to be included in the 3% QM points and fees test. This has some likely unintended negative consequences. If something comes up and the borrowers rate needs to be extended for 30 days (for example) that costs .75. If we have lender paid compensation at 2.5% then we would not be able to have extension fees at .75 or it would exceed the 3% cap. At that point do we tell the borrower they have to cancel their lock and re-lock at a higher rate (potentially)? I have not seen anything published by anyone specifically addressing rate lock extension fees.

Has anyone seen or heard anything regarding extension and the 3% QM points and fees test? Counting it seems like what needs to happen?

You are correct. My understanding is that any fee you keep as an Originator or Lender counts towards the 3%,(if not in the rate). This means extension fees, redraw fees, commitment fees, processing fees, etc.

We've been going round and round with this as well. We've taken the interpretation to mean any fees outside adjustments directly involved in the pricing (such as adjustments for a particular loan program) would be excluded.
Fees involved in securing the rate with an investor for other purposes (such as a rate lock extention fee) would be included in the 3%.

Any thoughts?

Who keeps the rate lock extension fee? I thought it went to the investor in which case it wouldn't count towards the 3%. Guess I better find out where it goes for sure.