Changes to the Qualified Mortgage Definition: What Does This Mean for Lenders Webinar

The Dodd-Frank Act created the Ability to Repay rules within Regulation Z’€™s mortgage standards, and also created the concept of the ‘€œQualified Mortgage,’€ or QM. This QM standard provided legal protections that were embraced by the industry. Statistics show that as of 2018, only 4% of mortgage loans did not meet the standards of a QM. One of the principal requirements to meet the QM standard is that the borrower’€™s debt-to-income (DTI) ratio cannot exceed 42%. But an exception was built in, the so-called ‘€œGSE Patch.’€ GSE stands for Government Sponsored Enterprise, and the GSEs are Fannie Mae and Freddie Mac. Essentially, if a loan would be disqualified from being considered a QM because the borrower’€™s DTI was too high, yet the loan would still qualify for insurance or purchase from a government entity, it would nonetheless be considered a QM.

But this GSE Patch is scheduled to expire. However, the CFPB has issued new final rules changing the definition of the so-called ‘€œGeneral QM.’€ DTI will no longer be considered for QM qualification; rather, a new pricing test was introduced. But that’€™s not all: there is a brand-new category of QM, called the ‘€œSeasoned QM.’€ This is intended to provide the same degree of legal protection for loans that meet certain standards and have generally been in good standing for 36 months.

In this webinar we’€™ll discuss these changes and additions to the QM rules. We’€™ll provide all the details, to be sure you’€™re ready for these changes. These will impact not only compliance efforts, but also systems and lending policies.

Covered Topics

  • Ability to Repay and QM rules: how did we get here
  • What loans are covered by these rules?
  • Changes to the ‘€œGeneral QM’€ definition ‘€“ change from DTI test to pricing test
  • The new ‘€œSeasoned QM’€ definition ‘€“ what does this mean? What loans are covered?
  • What QM status gets you
  • Safe Harbor vs. Rebuttable Presumption QMs ‘€“ how these new rules impact these categories
  • Impact to systems and policies
  • Expected effect on mortgage and secondary markets

Who Should Attend?

Bank counsel, compliance professionals, mortgage loan officers, loan processors, bank management.

Continuing Education (CE) Credits

This webinar is recommended for 2.5 CE Credit Hours. Each attendee will receive a Certificate of Attendance for self-reporting of CE Credits.

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Related Topics


Carl Pry
Carl Pry

Carl Pry is a Certified Regulatory Compliance Manager (CRCM) and Certified Risk Professional (CRP) who is a Managing Director for Treliant Risk Advisors in Washington, DC. Through his working career, ... read more.

Course TitleCreditsStart DateStart TimeDelivery TypeDelivery OptionInstructor / LocationPrice
Changes to the Qualified Mortgage Definition0.25 Any AnyWebinarSix Month On-Demand Recording Carl Pry$295.00 Register Now
Changes to the Qualified Mortgage Definition0.25 Any AnyWebinarCD-ROM Video Recording Carl Pry$345.00 Register Now
Delivery Options

INCLUDES 7 DAYS OF ONDEMAND PLAYBACK! With this option, you will participate in the webinar (via the internet) as it is being presented. You will login to the webinar on your PC to view the PowerPoint presentation, and you have the option of using your PC speakers or a telephone for the audio. You can type and send your questions to the instructor. Many companies are now running their PC through an LCD projector allowing many employees to participate at the same time. And don’t worry if you miss the webinar, you can still view it for up to seven days after it takes place!

With this option, you will receive an e-mail that contains a link to the PowerPoint slides (to download, print, and copy) as well as a link to the media player where you will view and hear the entire webinar just as it was delivered, featuring the full-color PowerPoint presentation with audio. You can pause, fast-forward and rewind as needed, which makes it an effective training tool. The weblink will be available to you (and anyone else in the company) for up to six months and can be accessed 24/7 as many times as you wish. Delivered via e-mail the day after the webinar takes place.

If you do not have internet access or want to make the webinar part of your training library, the CD-ROM Recording is a great option for viewing a webinar. You can pause, fast-forward and rewind as needed, which makes it an effective training tool. With this option, you will receive a download of the PowerPoint slides and a CD-ROM Recording (featuring PowerPoint presentation with audio) of the webinar via regular mail. Mailed 7 to 10 days after the webinar takes place.

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