Why bother with a Seasoned QM?

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Question:

My Chief Credit Officer asked why we should bother with Seasoned QMs in a rising rate environment. I’m not sure what to tell him. Can you help?

Answer:

A Seasoned QM is a unique creature that isn’t for everyone. True, it must have a fixed rate and be held in portfolio for 3 years, making it a trickier loan in a rising rate environment. However, there is one key aspect to this QM that may make it desirable – no rate pricing caps. Unlike the revised General QM, the Seasoned QM does not have any rate pricing restrictions, except for one.

What is that one limit? Tune into the upcoming webinar “Taking a Fresh Look at Qualified Mortgages and the Ability-To-Repay Rule” on February 15, 2023!

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Learn more about Rebekah Leonard’s Taking a Fresh Look at Qualified Mortgages and the Ability-To-Repay Rule webinar.