FinancingHARD
The Qualified Mortgage (QM) rule under Dodd-Frank prohibits loans with:
Correct Answer
B) Negative amortization or interest-only payments
Qualified Mortgages cannot have risky features such as negative amortization, interest-only payments, balloon payments (with some exceptions), loan terms exceeding 30 years, or excessive points and fees. QMs also have debt-to-income ratio limits.
Answer Options
A
Fixed interest ratesB
Negative amortization or interest-only paymentsC
Down payments less than 20%D
Terms longer than 15 yearsVideo Explanation3 min
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Related Topics & Key Terms
Related Topics:
dodd-frank-act-basicsqualified-mortgage-rulesconsumer-financial-protection-bureau
Key Terms:
Qualified MortgageDodd-Franknegative amortizationinterest-only paymentsCFPB Regulation Z
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