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#2164487 - 02/14/18 12:48 PM QM Points and Fees Calc - Owner's Title Insurance
Darn Regs Offline
Junior Member

Registered: 05/15/15
Posts: 48
Loc: In my own little world
We have a loan that is failing QM points and fees. Our own title insurance company is providing the Lender's and Owner's Title Policy. Our question is, do we leave the Owner's Policy in the QM points and fees calculation? Owner's Title Ins is optional, disclosed in Section H on the LE and CD. Half of the crew says to leave in the calculation, it's paid to an affiliate. The other half want to take it out of the calculation because it's an optional item. My inclination is to leave it in the calculation since it's paid to our own title company.

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Ability to Repay/Qualified Mortgage Rule
#2164505 - 02/14/18 01:28 PM Re: QM Points and Fees Calc - Owner's Title Insurance [Re: Darn Regs]
rlcarey Offline
10K Club

Registered: 07/16/01
Posts: 66366
Loc: Galveston, TX
Any fee not required by the lender to make the loan is excluded regardless of to whom it is paid.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2164542 - 02/14/18 03:09 PM Re: QM Points and Fees Calc - Owner's Title Insurance [Re: Darn Regs]
Darn Regs Offline
Junior Member

Registered: 05/15/15
Posts: 48
Loc: In my own little world
Thanks Randy, is there a reg citation for this? I couldn't find one.

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#2164546 - 02/14/18 03:15 PM Re: QM Points and Fees Calc - Owner's Title Insurance [Re: Darn Regs]
rlcarey Offline
10K Club

Registered: 07/16/01
Posts: 66366
Loc: Galveston, TX
Well - it is hard to prove a negative in the regulations. If someone thinks it should be included, then they should be able to support their claim by pointing to 1026.32(b)(1) and indicate under which specific section in that definition of points and fees they think covers homeowner's title insurance premiums.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2164561 - 02/14/18 04:00 PM Re: QM Points and Fees Calc - Owner's Title Insurance [Re: Darn Regs]
Darn Regs Offline
Junior Member

Registered: 05/15/15
Posts: 48
Loc: In my own little world
Fair enough! Thanks for the quick reply.

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