Ability to Repay and Qualified Mortgages
Dear Valued Partner,
As you may be aware, the Consumer Financial Protection Bureau (CFPB)’s Ability to Repay (ATR) and Qualified Mortgage (QM) rules went into effect on January 10, 2014.
To further assist our partners with clear understanding of the rules, Sun West has published a training guide that summarizes program-specific guidelines concerning ATR and QM rules. Please click here to access the training guide: Ability to Repay and Qualified Mortgage - Underwriting Reference.
Following are the key guidelines from Sun West with regards to ATR and QM rules:
• All loans submitted for purchase to Sun West with application date or FHA case assignment date (for FHA loans) on or after January 10, 2014 must be QM compliant.
• Sun West will accept loans under Temporary QM. Under Temporary QM, any loan eligible for purchase, guarantee, or insurance by GSEs or certain federal agencies is exempt from the maximum DTI requirement of 43%.
• Sun West requires all loans under rebuttable presumption to meet the residual income requirement.
If you have any questions, please contact your Account Executive at (855) OK-SUNWEST or (855) 657-8693.
Sun West Mortgage Company, Inc.
|This information is provided to licensed wholesale brokers only and may not be copied or distributed to customers or potential customers. All loans are subject to approval. Certain restrictions may apply. Listed pricing is a morning indication only. Program rates, prices, guidelines, fees, costs, terms and conditions are subject to change without notice.