If you originate or purchase a mortgage, you may have to follow certain requirements under Dodd-Frank. “The term ‘qualified mortgage’ was first used within the text of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which became federal law on July 21, 2010. The Dodd-Frank Act provided a general definition (essentially an outline) of the QM loan. The CFPB was then given the task of finalizing that definition, which they did in January 2013. The rule took effect in January 2014. Here are the key features of a qualified mortgage: READ MORE: http://www.qualifiedmortgage.org/definition/
Below is a 2-part flowchart prepared by the CFBP to determine if a mortgage is a “qualified mortgage.” It can be downloaded at http://files.consumerfinance.gov/f/201309_cfpb_smallcreditorflowchart_final.pdf
