Qualified Mortgage Messages

The following messages appear in OnBoard to assist users with the Qualified Mortgage test.

Table 1. Qualified Mortgage Messages
Criteria	Messages
The loan passes the Qualified Mortgage test.	`This loan passed the Points & Fees test for Qualified Mortgage. User is responsible for verifying that other necessary criteria is satisfied in order for loan to be considered a Qualified Mortgage.`
The loan is a fixed rate.	`If continuing with the loan, you may not charge a prepayment penalty after the first three years of the loan term. The penalty cannot be greater than 2% of the outstanding loan balance the first two years or 1% in the third year following consummation. Please review core information and make any necessary changes.`
The loan is a variable rate.	`Because this loan passed the Points & Fees test for Qualified Mortgage and contains a variable rate feature, you may not charge a prepayment penalty.`
The loan fails the Qualified Mortgage test, regardless of HOEPA test results.	`This loan is NOT considered a Qualified Mortgage. Failed Points And Fees Test.`
The loan fails the Qualified Mortgage test, and the override option is not selected in Administration > Bank Information > Loans > Loan Terms.	`Because this transaction failed the QM Points & Fees test, you will need to review the QM fee and prepayment information, make any necessary changes and run the QM test again.`

CAUTION

Carefully review the HOEPA and Qualified Mortgage results section in Terms. It is the user's responsibility to make any necessary changes in Core Information as it relates to the prepayment penalty and/or late charge restrictions. Failure to do so may result in discrepancies between information exported to the Core system and information printed on loan documents, as well as possible HOEPA and Qualified Mortgage violations.