Qualified Mortgages & Safe Harbor

The purpose of Regulation Z’s Ability to Repay and Qualified Mortgage (QM) requirements are all about determining, to the best of your ability, whether the applicant(s) can pay back the loan. While there is a lot of criteria to meet and things to consider, it bears mentioning that it’s okay to make a loan that does not meet the QM standards. Non-QMs do not provide any kind of safe harbor, however. Loans that do meet QM status provide either a conclusive safe harbor or a rebuttable presumption of compliance safe harbor which can help you if the loan ends up in court later on.

Kevin explains these more in the video.


Published
2025/03/18

Kevin Edwards

Kevin brings years of experience and a unique perspective on regulatory matters to our clients. A self-proclaimed geek and accredited CRCM, Kevin is also a recovering attorney with experience as in-house counsel for a large regional bank and one of the leading national title insurance providers. For reasons unknown, Kevin decided to leave the safety and serenity of his desk job to seek fortune and glory as a wandering adventurer. Like a bank compliance version of Kwai Chang Caine, The Man with No Name or Don Quixote, he now travels the land seeking to help those in need and righting compliance wrongs, wherever he may find them. Kevin lives in Sioux Falls with his two children, who are surprisingly normal after having endured their father’s vivid imagination for their entire lives. He won’t admit to having any hobbies, because apparently “Regulations never sleep.” (While he does say this in his Batman voice, we’re pretty sure he’s joking.) From the looks of his Facebook page, he likes the outdoors and spending time with his large extended family (who seem like relatively normal people).

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Qualified Mortgages & Safe Harbor
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