Qualified Mortgage Requirements

December 20, 2013

Gateway Mortgage Group, LLC will require loans covered by 12 CFR Section 1026.43 to meet the requirements of a Qualified Mortgage Loan, as defined in the Consumer Financial Protection Bureau’s Ability-to-Repay and Qualified Mortgage Rule.  Loans that are not subject to the CFPB’s ATR/QM rule will only be purchased if they meet all applicable agency and program guidelines. Any breach of these requirements shall be deemed to materially and adversely affect the value of the loan and shall require a repurchase of the affected loan. 

FHA loans, with case numbers assigned on January 10, 2014 or after, will only be purchased if they meet the definition of a “qualified mortgage”¹, and all necessary evidence to demonstrate such compliance is included in the loan files transferred to Gateway.

For any non-FHA loan, covered by 12 CFR Section 1026.43, that has an application date on or after January 10, 2014, Gateway will only purchase the loan if (i) it meets the definition of a “Qualified Mortgage” loan² and (ii) complies with the Ability To Repay Standards³, and all necessary evidence to demonstrate such compliance is included in the loan file transferred to Gateway.

Please refer to Chapter 2 of the Client Guide for specifics related eligible loans.

¹ Federal Register, Vol. 78, No. 238, 12/11/2013; Docket No. FR 5707-F-02; RIN 2502-AJ18
² § 1026.43(e)(2)
³ § 1026.43(c)

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