The following thresholds relating to Qualified Mortgage status will take effect January 1, 2015:
- The Points & Fees thresholds will increase and cannot exceed the following:
|Loan Amount:||Points & Fees Cap:|
|$101,953 & Up||3% (of the Total Loan Amount)|
|$61,172 – $101,952.99||$3,059|
|$20,391 – $61,171.99||5% (of the Total Loan Amount)|
|$12,744 – $20,390.99||$1,020|
|Under $12,744||8% (of the Total Loan Amount)|
**The above thresholds apply to most types of QMs. However, if your institution originates “Special QMs” under any government programs (HUD, VA, etc.), you should check those specific program requirements.
- The threshold used to determine small creditor status under Regulation Z will be $2.060 billion. This is up from $2.028 billion in 2014. This threshold comes into play for HPML escrow accounts under §1026.35(b)(2)(iii)(C), and the Ability to Repay/Qualified Mortgage rules under §1026.43.
To be exempt from the HPML escrow requirements as of January 1st, an institution must meet ALL of the following:
1. Have an asset size of less than $2.060 billion as of December 31, 2014;
2. In the prior calendar year, the creditor and any affiliates together originated no more than 500 first-lien dwelling secured loans; and,
3. In any of the 3 preceding calendar years, more than 50% of the creditor’s consumer purpose first-lien dwelling-secured loans were secured by properties located in counties deemed to be rural or underserved; and,
4. Neither the creditor or its affiliates maintain escrow accounts, except for those required to be established due to HPML status or escrow accounts established after closing to assist a borrower in avoiding default or foreclosure. See §1026.35(b)(2)(iii)(D) for details.
Additionally, institutions looking to originate Small Creditor Portfolio Qualified Mortgages or Balloon Payment Qualified Mortgages must meet the loan volume restrictions (#2 above) AND have assets of less than $2.060 billion as of December 31, 2014.