I always had it in my mind that a Section 32 loan could not be a QM. But, after needing to research further, I am not so sure anymore. Obviously, the points and fees trigger would be a no go, so to speak, as would the prepayment penalty, but if the only thing making the loan a Section 32 transaction is the APR/APOR rate spread, could it still be a rebuttable presumption QM? This would be assuming they showed the correct ability-to-repay, etc. at the high interest rate. I am not coming across any piece of the Regulation that prohibits this.

previous thread

I found this...might help.

Thank you. So, it sounds like it can very well be if the only trigger for the Section 32 is the APR/APOR spread.