Thread Options
#2246522 - 12/14/20 10:52 PM New seasoned QM
Bville Offline
Diamond Poster
Bville
Joined: May 2001
Posts: 1,282
Out West
The only pricing limitation other than point and fees is that they cannot be HCMLs?
Last edited by Bville; 12/14/20 11:32 PM.
Return to Top
Ability to Repay/Qualified Mortgage Rule
#2246525 - 12/14/20 11:36 PM Re: New seasoned QM Bville
Bville Offline
Diamond Poster
Bville
Joined: May 2001
Posts: 1,282
Out West
Well, I was trying to edit my question about the differences between the new seasoned QMs and the new General QM, but I seemed to have wiped out my original post completely.

Basically I wanted to know if I'm reading the rule correctly, in that the seasoned QM has some additional restrictions such as they must be fixed rate and first liens and more, but the underwriting is the same as the General QM. The only real difference that there are no pricing restrictions as far as comparing the APR to the APOR for the seasoned QM.

Return to Top
#2247786 - 01/18/21 07:05 PM Re: New seasoned QM Bville
Diane Dean Offline
Member
Joined: Oct 2012
Posts: 92
I would agree - and seasoned QM's have the performance requirements attached.
_________________________
Diane Dean
http://www.bankerscompliance.com

Return to Top
#2247787 - 01/18/21 08:46 PM Re: New seasoned QM Bville
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 79,234
Galveston, TX
The only real difference that there are no pricing restrictions as far as comparing the APR to the APOR for the seasoned QM.

Well, there is one APR/APOR pricing restriction - they cannot be Section 32 loans. They also have to meet the 3% points and fees test.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2247835 - 01/19/21 09:30 PM Re: New seasoned QM Bville
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 39,629
Cape Cod
Originally Posted by Bville
Well, I was trying to edit my question about the differences between the new seasoned QMs and the new General QM, but I seemed to have wiped out my original post completely.



Editing tip: Before trying to edit your post, copy all of the text in the post to your clipboard, then click the edit button. When you click in the post area, everything with disappear, but you can paste it back, then edit before submitting the edited post.

This works best when you haven't formatted eny of your text or included longer links that get truncated for display when posted.
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top
#2247848 - 01/19/21 10:15 PM Re: New seasoned QM Bville
Bville Offline
Diamond Poster
Bville
Joined: May 2001
Posts: 1,282
Out West
Thanks, John, that will be helpful next time.
Thanks, Randy, now I need to go back and read in order to catch that 3% points and fees limit.

Return to Top
#2249237 - 02/16/21 02:57 PM Re: New seasoned QM Bville
Tesla Offline
Power Poster
Joined: Nov 2003
Posts: 3,681
Jumping in here - what does this mean? "The covered transaction may be sold, assigned, or otherwise transferred once before the end of the seasoning, provided the covered transaction is not securitized as part of the sale, assignment or transfer or at any other time before the end of the seasoning period."

Are they talking about selling to the secondary market?
_________________________
It's not that I take life for granted. It's only that the good won't make it. Innocence dies, while Villany Thrives.

Return to Top
#2249238 - 02/16/21 03:05 PM Re: New seasoned QM Bville
Tesla Offline
Power Poster
Joined: Nov 2003
Posts: 3,681
Shoot - one more question- a bank can CHOOSE not to offer Seasoned QMs, right? Or did I misunderstand that?
_________________________
It's not that I take life for granted. It's only that the good won't make it. Innocence dies, while Villany Thrives.

Return to Top
#2249265 - 02/16/21 08:36 PM Re: New seasoned QM Bville
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 39,629
Cape Cod
Sure it can. It can choose not to make any specific loan type. The seasoned QM is just another way of having a loan treated as a QM.
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top
#2249266 - 02/16/21 08:39 PM Re: New seasoned QM Bville
Tesla Offline
Power Poster
Joined: Nov 2003
Posts: 3,681
Thanks.

What does that other language mean? "The covered transaction may be sold, assigned, or otherwise transferred once before the end of the seasoning, provided the covered transaction is not securitized as part of the sale, assignment or transfer or at any other time before the end of the seasoning period."
_________________________
It's not that I take life for granted. It's only that the good won't make it. Innocence dies, while Villany Thrives.

Return to Top
#2249399 - 02/18/21 10:55 PM Re: New seasoned QM Bville
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 79,234
Galveston, TX
That means you can't sell it into the secondary market where it will be bundled and sold as mortgage backed securities.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top