What is the maximum debt-to-income ratio allowed for a General Qualified Mortgage loan?
Correct Answer
C) 43%
Under 12 CFR 1026.43(e)(2)(vi), General QM loans have a maximum debt-to-income ratio of 43%. This DTI limit is calculated using the consumer's monthly debt obligations divided by monthly income.
Why This Is the Correct Answer
Under 12 CFR 1026.43(e)(2)(vi), General QM loans have a maximum debt-to-income ratio of 43%. This DTI limit is calculated using the consumer's monthly debt obligations divided by monthly income.
More Federal Laws Questions
A mortgage broker's website states 'Qualified borrowers can get loans with down payments as low as 3%.' Which statement about TILA advertising requirements is correct?
A loan's APR increases from 4.25% on the Loan Estimate to 4.35% on the Closing Disclosure due to a rate lock expiration. What action is required?
A lender originates a mortgage that meets all QM requirements. Three years later, the borrower defaults and claims the lender violated the ATR rule. What legal protection does the lender have?
For a closed-end mortgage loan, when must the creditor provide the Closing Disclosure to the borrower?
Which of the following documents must be provided to trigger the start of the 3-day rescission period?
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A mortgage broker maintains separate rate sheets - one for 'standard' applicants and another with higher rates for loans in certain ZIP codes that the broker privately refers to as 'problem areas.' These areas have predominantly minority populations. This practice: