I haven't had to visit this topic for a while and am needing to talk this through. It's my understanding that the 43% DTI is no longer a factor in deciding if one has a qualified mortgage or not and has been replaced with the priced-based General QM - I think this was effective in 2020.

As I read it appears that the priced-base definition is requiring institutions to calculate the customer's payment based on the highest rate within the first five years if the rate can change. We are currently doing this calculation for our ARM products that change in the first 3 years. So, what, with the new priced-based definition, should we be doing different when it comes to making qualifed mortgages?

If we make a loan that is not receiving the Safe Harbor or the Rebuttable Presumption does the customer have the opportunity to sue the bank for the life of the loan or is that have to take place within the first 7 years?

The 43% DTI and Appendix Q is gone. The general ability to repay requirements remain.

There is a three-year statute of limitations on ATR direct claims against a creditor for damages for an ATR violation. After three years, an ATR violation claim can only be used as a defense to foreclosure.

rlcarey, thanks for the clarification.