This week, the Consumer Financial Protection Bureau announced adjustments to the max points and fees that can be charged on QM loans.
In short, banks and mortgage lenders will be able to charge a little bit more and still stay within the QM realm next year.
This is the first of what will be ongoing annual adjustments, which is a requirement under the qualified mortgage provisions of Dodd-Frank.
These new limits will go into effect on January 1, 2015:
– For all loan amounts at or above $101,953, points and fees may not exceed 3% of the total loan amount. This figure is up from the current $100,00 limit.
– For loan amounts of $61,172 up to $101,952, points and fees may not exceed $3,059. These figures are up from $60,000, $99,999, and $3,000, respectively.
– For loan amounts of $20,391 up to $61,171, points and fees may not exceed 5% of the loan amount. This is up from $20,000 and $59,999, respectively.
– For loan amounts of $12,744 up to $20,390, points and fees may not exceed $1,020. These figures are up from $12,500, $19,999, and $1,000, respectively.
– For loan amounts less than $12,744, total points and fees may not exceed 8% of the loan amount. This is up from $12,500 currently.
If the points and fees exceed these new limits in 2015, the loan will be considered non-QM.