Q
QuestionBusiness Law

There are four categories of qualified mortgages: general, seasoned, balloon, and small creditor. Which features are common to all and unique to the general QM category?
6 months agoReport content

Answer

Full Solution Locked

Sign in to view the complete step-by-step solution and unlock all study resources.

Step 1
I'll solve this problem by carefully analyzing the characteristics of qualified mortgages (QM) across different categories.

Step 2
: Understand Qualified Mortgage (QM) Categories

The four QM categories are: - General QM - Seasoned QM - Balloon QM - Small Creditor QM

Final Answer

Common features across ALL QM categories: - ATR compliance - No excessive fees - Income verification - Reasonable debt-to-income standards Unique to General QM: - Strict 43\% debt-to-income limit - Maximum 3\% points and fees - Standard documentation requirements for conventional loans