We are qualifying all of our consumer RE loans through Desktop Underwriter (a GSE AUS). If we get an "APPROVE/INELIGIBLE" but the only reason it's ineligible is due to LTV or amount of cashout can this still be a QM under 1026.43(e)(4)(i)? I'm reading Supplement I to Part 1026-Official Interpretations.

I believe such a loan would be a QM. LTV and amount of cash out do not affect a customer's ability-to-repay under 1026.43(e)(4)(ii).
(ii) Eligible loans. A qualified mortgage under this paragraph (e)(4) must be one of the following at consummation
(A) A loan that is eligible, except with regard to matters wholly unrelated to ability to repay...