Randy - I realize your answer is reflected in a direct read of the regulation and I do agree with that approach. It works for us since we're not bumping up against the QM caps in our points and fees totals. But we would prefer that our automated analysis work instead of having to make manual adjustments. Our mortgage platform company has chosen to follow the informal guidance provided by the conversation of the CFPB with the MBA and will not add the HOI escrow to the points and fees because those funds are not retained.
Our situation is actually that we sell insurance directly (town of 5,000 rule) and so we're not looking at the whole affiliate question that has been the focus of so many of the questions. Our focus is on the fact that, of course, we receive compensation in the form of a percentage commission on the annual premium - and we then split that amount between bank and agent. I noted the answer Carolina Blue reported receiving from the Bureau in December - indicating that the commission percentage should be applied to the escrow amount, which reflects the compensation issue more directly. It's very confusing. We do need reliable documentation that we've met QM guidelines since we sell our loans.
Is there any indication that further formal guidance will be provided? Are some banks including the full escrow amount while others are doing an additional calculation to only include what they retain / receive as compensation? Any additional issues come to mind? (Yes, I'm pursuing answers directly from the rule makers too.)