To qualify for the Small creditor qualified mortgage will the less than 500 loans per year should we include HEQ for purchase money, Amortizing seconds mortgages or brokered secondary market loans not closed in our name or hybrid secondary market loans closed in our name?
Also for the small creditor qualified mortgage, it is our understanding that appendix Q does not apply. Only the general 8 factors. Is this correct?
If it is a HELOC they are not included. If it is a covered loan and it closes in your bank’s name then it should count towards the 500 since it was originated by your bank. Look at 1026.35(b)(2)(iii)(B)&(c).
1026.43(e)(5) Qualified mortgage defined—small creditor portfolio loans. (i) Notwithstanding paragraph (e)(2) of this section, a qualified mortgage is a covered transaction:
(A) That satisfies the requirements of paragraph (e)(2) of this section other than the requirements of paragraph (e)(2)(vi) and without regard to the standards in appendix Q to this part;