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BankersOnline.com Forums Dodd-Frank Final Rules Discussions Ability to Repay/Qualified Mortgage Rule Need Confirmation! Balloon HPMLs
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#2274949 - 08/30/22 07:33 PM Need Confirmation! Balloon HPMLs
Libby M. Offline
Platinum Poster
Joined: Sep 2007
Posts: 604
Mississippi, USA
We make HPML Balloon loans with a fixed rate for 61 months, amortized over 30 years. With the 10-1-2022 changes to ATR requirements, will the change we need to implement simply be that the APR cannot exceed that APOR more than 2.25%? Thank you.
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Lela Purvis, CRCM/CCBCO/CBAP


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Ability to Repay/Qualified Mortgage Rule
#2274951 - 08/30/22 08:04 PM Re: Need Confirmation! Balloon HPMLs Libby M.
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,370
Galveston, TX
If you are a underwriting under the small credit QM category, there are no APOR/APR thresholds. Those only apply to the General QM category.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2274952 - 08/30/22 08:24 PM Re: Need Confirmation! Balloon HPMLs rlcarey
Libby M. Offline
Platinum Poster
Joined: Sep 2007
Posts: 604
Mississippi, USA
We are a small entity, so none of the 10-1-2022 changes will affect us?
_________________________
Lela Purvis, CRCM/CCBCO/CBAP


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#2274957 - 08/30/22 09:10 PM Re: Need Confirmation! Balloon HPMLs Libby M.
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,370
Galveston, TX
It totally depends. If you do nothing but underwrite under the small creditor qualified mortgage provisions, nothing changes for you.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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