New seasoned QM

The only pricing limitation other than point and fees is that they cannot be HCMLs?

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.

I would agree - and seasoned QM's have the performance requirements attached.

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.

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.

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.

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?

Shoot - one more question- a bank can CHOOSE not to offer Seasoned QMs, right? Or did I misunderstand that?

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.

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."

That means you can't sell it into the secondary market where it will be bundled and sold as mortgage backed securities.