[tballard]

Recently the topic of QM fees has come up in various conversations. Specifically, is a rate lock extension a QM fee? I would love to get the groups opinion. There are two situations:

1. The lender is a Correspondent Lender who is originating the loan and the extension fee is being charged by the Investor. The fee is being charged to the Borrower due to their not being able to perform and close the loan within the lock period. The Correspondent lender is NOT keeping any of the extension fee. Is this considered a QM fee or would it be considered an LLPA?

2. The lender is a Correspondent Lender who is originating the loan and the extension fee is being charged by them and will be kept by the Correspondent Lender. If this considered a QM Fee or is it an LLPA?

[rcooper]

I can’t speak as to what others are doing, but see page 39 bullet #5 – it might provide some insight.: https://files.consumerfinance.gov/f/201401_cfpb_atr-qm_small-entity-compliance-guide.pdf.

You might get more feedback if you post this in the CMG forum.

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