If we accidently exceed the QM Points and Fees threshhold, is there a way to fix or cure the error so that the loan would remain a Qualified Mortgage?

For example: $150k loan amount, there is therefore a 3% cap, we accidently charge 3.1% in points and fees. If we reimbursed the borrower the 0.1%, would the loan be considered a Qualified Mortgage?

That is a good question - would we be abel to refund the overage on the hUD and then consider the loan a QM? I would liek to know the answer to that one

Its my understanding that there is NO cure to the points and fees test. I know that the CFPB has been presented the question. Unfortunately, you either meet QM or you don't. As such, it is very important to make sure you have procedures in place to make sure that you do not close a loan where in the points and fees exceed 3% if you have the goal to not close non-QM loans.

We have decided we will allow non-QM but the goal is to have most loans been QM.
We have an ARM today that isn't passing the points and fees test for QM. If we are ok with it not passing, and will portfolio the loan, are there any other steps required due to the points and fees fail?

Not sure if this answers your question, but the commentary to 1026.32(b)(1) says:

iv. Creditor-paid charges. Charges that are paid by the creditor, other than loan originator compensation paid by the creditor that is required to be included in points and fees under § 1026.32(b)(1)(ii), are excluded from points and fees. See §§ 1026.32(b)(1)(i)(A), 1026.4(a), and comment 4(a)-(2) [Sic. Should probably read "comment 4(a)-2"]

For example: $150k loan amount, there is therefore a 3% cap, we accidently charge 3.1% in points and fees. If we reimbursed the borrower the 0.1%, would the loan be considered a Qualified Mortgage?

Is your discovery of this before or after the loan closes???

If it was before the loan closed, we'd be fine. My question is what happens if we discover this post-closing and then reimburse so that we're below 3%.

There is no regulatory cure. You made a non-QM loan. I don't think there is any turning that clock back.