On Monday, November 3, the American Bankers Association posted an article on the ABA Dodd-Frank Tracker website discussing the recent decision by the Department of Housing and Urban Development not to include the Points and Fees Cure in it’s Qualified Mortgage Definition.
“The Department of Housing and Urban Development is issuing a revision to its definition for FHA-insured Qualified Mortgages that applies to Section 501(c)(3) nonprofits that originate and service mortgages. In doing so, HUD declined to adopt the limited cure provision adopted by the CFPB.
The cure allows a lender who intends to originate a Qualified Mortgage — but who later finds that the points and fees charged exceed the 3% cap — to refund the excess and retain QM protections.”
You can read the full article here.
You can find the Department of Housing and Urban Development’s announcement here.