Skip to content
BOL Conferences
Forums · Active Threads · Forum Rules · Mark All Read · Log In
BankersOnline.com Forums Dodd-Frank Final Rules Discussions Ability to Repay/Qualified Mortgage Rule Calculating Dissipation of Assets for Income
Thread Options
#2008320 - 04/15/15 07:18 PM Calculating Dissipation of Assets for Income
awilli Offline
Gold Star
Joined: Oct 2014
Posts: 291
For QM loans, how must a liquid asset dissipation be calculated? Any regulatory requirements?

Also, what about for Non-QM loans?
_________________________
Say what you mean, mean what you say, but don't say it mean.

Return to Top
Ability to Repay/Qualified Mortgage Rule
#2010457 - 04/27/15 04:23 PM Re: Calculating Dissipation of Assets for Income awilli
AnonRegulator Offline
Gold Star
AnonRegulator
Joined: Mar 2002
Posts: 451
Everywhere, USA
There are no regulatory requirements on this other than the value of the property securing the debt may not be used in your calculation of current or reasonably expected income or assets. See the CFPB's compliance guide on QMs & ATR.

So, you just need to formulate what you think is a reasonable liquidation of the assets in question, both from a timing (when could the assets reasonably sell) and value (for how much could they be sold) standpoint, and then be able to explain it, if not defend it.

If you are also asking about asset liquidation as a source of repayment for non-QMs, there are no regulatory requirements there either. AR.

Return to Top
#2010460 - 04/27/15 04:28 PM Re: Calculating Dissipation of Assets for Income awilli
awilli Offline
Gold Star
Joined: Oct 2014
Posts: 291
Thank you
_________________________
Say what you mean, mean what you say, but don't say it mean.

Return to Top