CFPB announced some minor changes to the ATR and QM rule (CFPB). Read all about it.
The allowable refund of fees which exceed the QM thresholds is a good one. Under the changes, a lender has the opportunity to refund such an overpayment within 210 days after the closing. So, if you miscalculate, or something changes at the closing which might increase your fees, you can make this refund so the loan is again considered a QM loan. Of course, all other QM criteria must be met as well. No free passes here.
So, you might now be a little more comfortable when charging fees that may bump up close to the QM thresholds. If it turns out your fees are a little too high, you can make the refund needed to maintain the QM ATR safe harbor. Be careful though as CFPB will be looking to see if this becomes a pattern or practice used by lenders to extract additional fees/charges on their loans. Such refunds should be the exception and not the rule.
Anyone see this as a bad thing? I don’t…