Qualified Mortgage in MortgageDashboard
MortgageDashboard is a very open environment for change. When shifts in the mortgage industry threaten loan officers with heavier compliance, our team responds early and appropriately. The Qualified Mortgage tab is one example of that. Performing real-time tests on your loan file, the new QM tab calculates your results and determines if you’re originating a qualified mortgage. In this week’s video, Director of Compliance Danielle Tsai illustrates the efficiency of MortgageDashboard’s new qualified mortgage tab. Read the toggles to the right for more information on each test ran by the QM tab.
MortgageDashboard is also a flexible tool for compliance. Through it’s compliance management system, or C-Alerts, users are alerted any time a non-compliant action is requested. While it comes out of the box with the most up-to-date rules MortgageDashboard also allows you to set additional individual parameters for your company.See C-Alerts for yourself
The Loan Qualifications Check will display a result of either standard, temporary or non-qualified mortgage. It uses 6 points to define these results.
1. The Points & Fees: will show you the points and fees associated with the loan. Showing your actual loan data, it will show you what you’re charging and the total amount you could charge. If you’ve gone over, you will not pass this part of the loan qualifications check. If passed, you will see a green check mark.
2. Debt-to-Income Ratio: will determine whether your loan exceeds the 43% DTI. If the DTI in your actual loan data is above 43%, your result for this section will likely be temporary.
3. Loan Term: if the loan has a term greater than 30 years, it will fail the check.
4. No Balloon Payments: if the loan has a balloon payment, the check will show a red “X”.
5. No Negative Amortization: If there are negative amortization months, the actual loan data will calculate how many there are and show you a red “X” instead of a green check.
6. No Interest Only: If there is no loan data for this option, it will have passed the check.
This is the test to determine whether you loan is safe harbor or rebuttable presumption. MortgageDashboard will perform this test based on both the CFPB rule and additional specific-rules for FHA loans. It will add 1.50% to your APOR to determine whether you loan is eligible for safe harbor. The final result will be green if this loan has passed the check.
This check determines whether the loan is HPML or Non-HPML. This is especially helpful when you have a FHA loan because you could have a safe harbor loan that’s an FHA and still an HPML loan. Otherwise, if the result was Non-HPML you would see a red “X”.
The Bona Fide Discount check will determine your par rate, threshold, the amount of discount charged and the forced discount. It will also show you the amount of discount points that can be excluded from the discount test.
More About C-Alerts:
Always Updated: MortgageDashboard was built on the cloud. When the CFPB releases new compliance laws, our team can immediately add new rules and implement them for every user. This ensures that you’re not only working with the most secure loan origination software, you’re also working with the most compliant version.
Triggers for Every Rule: Some mortgage software applications give an almost laissez faire attitude toward compliance; MortgageDashboard takes it very seriously. Some examples of C-Alert triggers include checking the interview date with the three-day disclosure rule and making sure the interest rate doesn’t change by more than an eighth percent without re-disclosing.
Audit Trail: Knowing how your loan officers are performing and meeting all investor requirements is important. With MortgageDashboard, mortgage companies can monitor anyone inside their organization who deviates from compliance requirements. Whenever a non-compliant action is requested, the action is documented within the audit trail.
About Danielle Tsai
Danielle Tsai is the Compliance Director at MortgageDashboard. As an experienced mortgage professional, her detail-oriented management and problem solving skills have helped MortgageDashboard continually become first-responders to the shifting compliance environment.
Have any questions about the Qualified Mortgage Tab? Email here.